The Standard Deviation and Expected Returns for 4 Portfolios (A,B,C,and

question 3

Essay

The standard deviation and expected returns for 4 portfolios (A,B,C,and D)are graphed on the following efficient frontier:
Which of the following portfolios (or combinations)are likely to be preferred by a risk-averse investor? Which of the following portfolios (or combinations)are likely to be preferred by a risk-loving investor? Explain your reasoning.

---

Definitions:

Synapses

The junctions between neurons through which they communicate with each other, transmitting signals via chemical or electrical means.

Y Chromosomes

A type of sex chromosome, present typically in males, that is involved in sex determination; males have an XY genotype, while females have XX.

Sex Hormones

Chemical substances produced by the sex organs and adrenal glands that regulate sexual development and behavior, as well as reproduction.

Individualism

A social theory favoring freedom of action for individuals over collective or state control.