Which of the Following Pairs of Portfolios Exemplifies the Risk-Return

question 130

Multiple Choice

Which of the following pairs of portfolios exemplifies the risk-return tradeoff?

• A)For Portfolio A, the average return is 6 percent and the standard deviation is 15 percent; for Portfolio B, the average return is 6 percent and the standard deviation is 25 percent.
• B)For Portfolio A, the average return is 5 percent and the standard deviation is 15 percent; for Portfolio B, the average return is 8 percent and the standard deviation is 15 percent.
• C)For Portfolio A, the average return is 5 percent and the standard deviation is 25 percent; for Portfolio B, the average return is 8 percent and the standard deviation is 15 percent.
• D)For Portfolio A, the average return is 5 percent and the standard deviation is 15 percent; for Portfolio B, the average return is 8 percent and the standard deviation is 25 percent.

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Definitions:

Retinal Ganglion Cells

Retinal ganglion cells are neurons located in the retina that receive visual information from photoreceptors and send it to the brain via the optic nerve.

Melanopsin

A photopigment found in specialized photosensitive retinal ganglion cells, important for regulating circadian rhythms and pupil constriction in response to light.

Suprachiasmatic Nucleus

A tiny region in the brain's hypothalamus responsible for controlling circadian rhythms by regulating melatonin production, affecting sleep and wakefulness.

Melanopsin

A photopigment found in retinal ganglion cells, influential in regulating circadian rhythms and pupil response.