Figure 19-2

question 228

Multiple Choice

Figure 19-2.The figure shows a utility function for Mary Ann.
-Refer to Figure 19-2.From the appearance of the utility function,we know that

• A) if Mary Ann owns a house,she would not consider buying fire insurance.
• B) Mary Ann would prefer to hold a portfolio of stocks with an average return of 8 percent and a standard deviation of 2 percent to a portfolio of stocks with an average return of 8 percent and a standard deviation of 5 percent.
• C) Mary Ann would prefer to hold a portfolio of stocks with an average return of 8 percent and a standard deviation of 5 percent to a portfolio of stocks with an average return of 6 percent and a standard deviation of 3 percent.
• D) All of the above are correct.

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Definitions:

Conglomerate

A large, multi-industry company composed of various unrelated businesses under a single corporate group.

Parent-Country Nationals

Parent-country nationals are employees who originate from the country where the headquarters of a multinational company is located, often sent abroad to work in the company's foreign operations.

Corporate Culture

The set of shared attitudes, values, goals, and practices that characterizes an institution or organization, influencing the behavior of individuals within it.

Repatriation

The process of PCNs, TCNs, or even HCNs returning to their home headquarters or home subsidiaries.