In a Return-Standard Deviation Space, Which of the Following Statements

question 48

Multiple Choice

In a return-standard deviation space, which of the following statements is(are) true for risk-averse investors? (The vertical and horizontal lines are referred to as the expected return-axis and the standard deviation-axis, respectively.) I) An investor's own indifference curves might intersect.
II) Indifference curves have negative slopes.
III) In a set of indifference curves, the highest offers the greatest utility.
IV) Indifference curves of two investors might intersect.

• A)I and II only
• B)II and III only
• C)I and IV only
• D)III and IV only

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