To Build an Indifference Curve, We Can First Find the Utility

question 2

Multiple Choice

To build an indifference curve, we can first find the utility of a portfolio with 100% in the risk-free asset, then

• A)find the utility of a portfolio with 0% in the risk-free asset.
• B)change the expected return of the portfolio and equate the utility to the standard deviation.
• C)find another utility level with 0% risk.
• D)change the standard deviation of the portfolio and find the expected return the investor would require to maintain the same utility level.

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Definitions:

Endocrine System

A network of hormone-secreting glands associated with changes in the individual’s mood, metabolism, and growth. The glands associated specifically with puberty include the pituitary gland, the thyroid gland, the adrenal glands, and the sex glands (gonads).

Hormone-Secreting Glands

Organs or tissues in the body that release hormones directly into the blood or surrounding tissues, influencing various bodily functions.

Hypothalamatic System

A part of the brain responsible for the regulation of certain metabolic processes and other activities of the autonomic nervous system, including temperature regulation, hunger, and thirst.

Growth Spurt

A rapid increase in physical growth, often occurring during puberty.