In a Return-Standard Deviation Space,which of the Following Statements Is(are)true

question 41

Multiple Choice

In a return-standard deviation space,which of the following statements is(are) true for risk-averse investors? (The vertical and horizontal lines are referred to as the expected return-axis and the standard deviation-axis,respectively. )
I.An investor's own indifference curves might intersect.
II.Indifference curves have negative slopes.
III.In a set of indifference curves,the highest offers the greatest utility.
IV.Indifference curves of two investors might intersect.

• A) I and II only
• B) II and III only
• C) I and IV only
• D) III and IV only
• E) none of these

---

Definitions:

Arbitration

A form of alternative dispute resolution where a neutral third party makes a decision on a dispute outside the court system.

Data Packet

A formatted unit of data transmitted over a network, containing control information and user payload, facilitating reliable communication.

Data Bus

A communication system within a computer or between computers designed to transfer data or instructions between components.