Figure 27-4 -Refer to Figure 27-4. Which of the Following Statements Is

question 113

Multiple Choice

Figure 27-4
-Refer to Figure 27-4. 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.

---

Definitions:

Negotiable

Referring to instruments or documents whose rights or monetary value can be transferred to another individual through endorsement or delivery.

Nature

The phenomena of the physical world collectively, including plants, animals, the landscape, and other features and products of the earth, as opposed to humans or human creations.

Instrument

A formal legal document that serves as evidence of a fact or a right, and can include negotiable instruments in financial transactions.

Payable On Demand

A financial term referring to a debt or obligation that must be paid or fulfilled whenever the lender or beneficiary demands.