Which of the Following Makes This a True Statement: the Shape

question 104

Multiple Choice

Which of the following makes this a true statement: The shape of the efficient frontier implies that:

• A)diminishing returns apply to risk-taking in the investment world.
• B)increasing returns apply to risk-taking in the investment world.
• C)returns are not impacted by risk-taking in the investment world.
• D)None of these complete the sentence to make it true.

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Definitions:

Revolutionary War Debts

Financial obligations incurred by the United States during the American Revolutionary War, which led to significant fiscal policy debates in the early republic.

National Debt

The total amount of money that a country’s government has borrowed by various means, including foreign governments and private investors.

King Louis XVI

The last King of France before the fall of the monarchy during the French Revolution, executed for treason against the state in 1793.

French Revolution

A period of radical social and political upheaval in France (1789-1799) that significantly affected European and world history, characterized by its attempts to fundamentally redefine the structure of society.