If the Results of a Two-Factor Experiment Are Presented in a Line

question 13

Multiple Choice

If the results of a two-factor experiment are presented in a line graph,then what pattern appears in the graph if there is an interaction?​

• A)​The lines in the graph are not straight (bent).
• B)​The lines are separated by a space.
• C)​The lines are parallel.
• D)​The lines move toward each other or cross.

---

Definitions:

Firm-specific Risk

Risk associated with an individual company, as opposed to the market as a whole.

Efficient Frontier

A graphical representation in portfolio management that shows the best possible investment portfolios that offer the highest expected return for a given level of risk.

Risky Assets

Assets that have a higher degree of uncertainty in their returns, often with the potential for higher gains but also higher losses.

Minimum-variance Portfolio

An investment portfolio designed to have the lowest possible risk (variance) for its expected return.