Figure 27-6

question 98

Multiple Choice

Figure 27-6.On the graph,x represents risk and y represents return.
-Refer to Figure 27-6.Which of the following statements is correct?

• A)At point A the standard deviation of the portfolio is 3.
• B)A risk averse person always will choose to be at point A.
• C)At point D the portfolio consists of about 15 percent stocks and 85 percent safe assets.
• D)The figure shows that the greater the risk,the greater the return.

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Definitions:

Vision Statement

A future-oriented declaration of an organization's purpose and aspirations, meant to inspire and guide the strategic planning process.

Futurists

Individuals or scholars who study and make predictions about the future based on current trends and data.

Intuition

An immediate understanding or knowing of something without the need for conscious reasoning or analysis.

Unambitious Business Practices

Business strategies or routines that lack innovation or a drive for growth and improvement.