On a Standard Expected Return Versus Standard Deviation Graph, Investors

question 18

Multiple Choice

On a standard expected return versus standard deviation graph, investors will prefer portfolios that lie to the ________ the current investment opportunity set.

• A) left and above
• B) left and below
• C) right and above
• D) right and below

---

Definitions:

Efficiency

The extent to which time or effort is well used for the intended task or purpose, often with the minimum amount of waste, expense, or unnecessary effort.

Equality

An existence of equality, notably in areas of status, rights, and opportunities.

Opportunity Cost

The cost of foregoing the next best alternative when making a decision or choice.

Ticket Price

The cost charged for admission to an event or access to a service.