In the Mean-Standard Deviation Graph,the Line That Connects the Risk-Free

question 30

Multiple Choice

In the mean-standard deviation graph,the line that connects the risk-free rate and the optimal risky portfolio,P,is called ______________

• A) the Security Market Line
• B) the Capital Allocation Line
• C) the Indifference Curve
• D) the investor's utility line
• E) none of these

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Definitions:

Expert Power

The influence a person has over others due to their recognized expertise, skills, or knowledge in a specific area.

Coercive Power

The capacity to control others through the fear of punishment or the loss of valued outcomes.

Legitimate Power

Legitimate Power is authority that is officially sanctioned or accepted due to a person’s position or role within an organization or system.

Referent Power

A form of influence where a person elicits compliance or admiration from others based on charisma or personal traits rather than formal authority.