The Utility Score an Investor Assigns to a Particular Portfolio

question 39

Multiple Choice

The utility score an investor assigns to a particular portfolio, other things equal,

• A) will decrease as the rate of return increases.
• B) will decrease as the standard deviation decreases.
• C) will decrease as the variance decreases.
• D) will increase as the variance increases.
• E) will increase as the rate of return increases.

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Definitions:

Posttraumatic Stress Disorder

A mental condition triggered by witnessing or experiencing a terrifying event, leading to lasting stress and anxiety.

Effective

The capability of producing a desired result or achieving a specific outcome successfully.

Placebo Effect

The phenomenon in which patients improve because they believe they are receiving treatment, even though they are actually receiving a sham or inert treatment.

Herbal Supplement

Natural products made from plants that are used to support health or provide a nutritional boost.