Treynor Showed That Rational, Risk-Averse Investors Always Prefer Portfolio Possibility

question 98

Multiple Choice

Treynor showed that rational, risk-averse investors always prefer portfolio possibility lines that have

• A) zero slopes.
• B) slightly negative slopes.
• C) highly negative slopes.
• D) highly positive slopes.
• E) highly positive slopes

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Definitions:

Clang

A rhyme used by some people with schizophrenia as a guide to forming thoughts and statements.

Neologisms

Newly coined words, expressions, or usages that may be created by individuals in various contexts, including linguistics, literature, and mental health disorders.

Delusions of Control

False beliefs that one's thoughts, feelings, or actions are being controlled by external forces.

Perseveration

The repetitive and continuous fixation on a specific thought, action, or emotion, despite attempts to change or divert it.