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Charlie's utility function is U(xA, xB) = xAxB. If Charlie's income were $40, the price of apples were $2, and the price of bananas were $6, how many apples would there be in the best bundle that Charlie could afford?
Capital Allocation Line
A graph line that represents all possible combinations of risk-free and risky assets for an investor.
Mean Standard Deviation Graph
A graphical representation that shows the variability of a dataset around its mean value, often used in statistics.
Expected Return
Expected return is the weighted average of the probable returns of an investment, accounting for all possible scenarios.
Risky Asset
An asset that carries a significant chance of losing part or all of its investment value.
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