Figure 14-5

question 27

Multiple Choice

Figure 14-5. On the graph, x represents risk and y represents return.
-Refer to Figure 14-5. 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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Unsatisfied Need

A consumer demand or desire that has not been fulfilled by existing products or services in the market.

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The specific requirements that consumers are looking to fulfill with a product or service.

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