If a Bank Issues You a Line of Credit,you Can

question 134

Multiple Choice

If a bank issues you a line of credit,you can borrow:

• A)money for less than a year.
• B)up to a specified amount as the need arises.
• C)capital for one to five years.
• D)on a personal account for five years or more.

---

Definitions:

Relevant Risk

The portion of an investment's risk that cannot be eliminated through diversification, also known as systematic or market risk.

Market Portfolio

A theoretical portfolio of all assets in the market, with each asset weighted according to its market capitalization.

Efficient Frontier

A concept in modern portfolio theory which represents a set of optimal portfolios that provide the highest expected return for a defined level of risk or the lowest risk for a given level of expected return.

Indifference Curve

A curve connecting all portfolios with the same utility according to their means and standard deviations.