In the Mean-Standard Deviation Graph,which One of the Following Statements

question 64

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 above.

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Definitions:

Labor Demand Curve

A curve representing the quantity of labor that employers wish to hire at different wage rates.

Technological Advances

Innovations and improvements in technology that enhance efficiency, productivity, or quality in goods and services.

World Price

The price of a good that prevails in the world market for that good.

Oil Field

A region with an abundance of oil wells extracting petroleum (crude oil) from below ground.