The Reward/variability Ratio Is Given by _________

question 26

Multiple Choice

The reward/variability ratio is given by _________.

• A) the slope of the capital allocation line
• B) the second derivative of the capital allocation line
• C) the point at which the second derivative of the investor's indifference curve reaches zero
• D) portfolio excess return

---

Definitions:

Independent Variable

In experimental research, the variable that is manipulated or changed to observe its effect on a dependent variable.

Self-esteem

An individual's subjective evaluation of their own worth, encompassing beliefs and emotions about oneself.

Anxiety

A feeling of worry, nervousness, or unease about something with an uncertain outcome, often characterized by physical symptoms.

Emotional Stability

The ability to maintain balance and manage emotions, especially in stressful situations, without extreme reactions.