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

question 32

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
• E) None of the options are correct.

---

Definitions:

Purchase Money Security Interest

A legal claim that allows a lender to repossess or foreclose on property if the borrower fails to pay back the loan used to purchase the property.

Grain Elevator

A facility equipped to receive, store, and often ship grain.

Bankruptcy

is a legal process through which individuals or businesses unable to pay their debts can seek relief from some or all of their financial obligations.

Crop of Wheat

The yield or harvest of wheat plants produced in a particular season or area, significant for food production and agricultural trade.