Which of the Following Statements Is Correct

question 112

Multiple Choice

Which of the following statements is correct?

• A)A dominant portfolio has the best risk-return relationship as compared to other portfolios.
• B)It is not necessarily true that when an investment achieves a high return that it is risky.
• C)A low standard deviation means that the investment is less likely to achieve high returns; which means that it is more risky.
• D)None of these statements is correct.

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Definitions:

Price of Clothing

The amount of money required to purchase garments, influenced by factors like brand, quality, and market demand.

Economic Stimulus Package

A set of economic measures put forth by a government to stimulate a floundering economy and promote growth.

Budget Line

A graphical representation of all possible combinations of two goods that a consumer can purchase at given prices within his or her income.

Indifference Map

A graphical representation of combinations of goods between which a consumer is indifferent, showing preferences and trade-offs.