In the Mean-Standard Deviation Graph, Which One of the Following

question 25

Multiple Choice

In the mean-standard deviation graph, which one of the following statements is true regarding the indifference curve of a risk-averse investor

• A)It is the locus of portfolios that have the same expected rates of return and different standard deviations.
• B)It is the locus of portfolios that have the same standard deviations and different rates of return.
• C)It is the locus of portfolios that offer the same utility according to returns and standard deviations.
• D)It connects portfolios that offer increasing utilities according to returns and standard deviations.
• E)None of the options

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Definitions:

Aversive Conditioning

A method of behavior modification that uses negative stimuli to induce a change in behavior.

Unwanted Behaviors

Actions or reactions that are considered undesirable or inappropriate within a given context or societal norms.

Anxiety-Triggering Situations

Scenarios or stimuli that induce a state of fear or apprehension, potentially leading to an anxiety response in individuals sensitive to such triggers.

Operant Conditioning

A technique in pedagogy where the escalation or de-escalation of behavior is influenced by reward or reprimand.