Consider a Risky Portfolio, X, with an Expected Rate of Return

question 20

Multiple Choice

Consider a risky portfolio, X, with an expected rate of return of 0.15 and a standard deviation of 0.15, that lies on a given indifference curve. Which one of the following portfolios might lie on the same indifference curve for a risk averse investor?

• A) E(r) = 0.15; Standard deviation = 0.20
• B) E(r) = 0.15; Standard deviation = 0.10
• C) E(r) = 0.10; Standard deviation = 0.10
• D) E(r) = 0.20; Standard deviation = 0.15
• E) E(r) = 0.10; Standard deviation = 0.20

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