Figure 9-5

question 18

Multiple Choice

Figure 9-5. On the graph, x represents risk and y represents return.

-Refer to Figure 9-5. Point A represents a situation in which

• A) all of a person's savings are allocated to a class of safe assets.
• B) the person knows with certainty that his or her return will be 3 percent.
• C) the standard deviation of the person's portfolio is zero.
• D) All of the above are correct.

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Definitions:

Bilateral Contract

A legal agreement in which each of the parties to the contract makes a promise to the other or undertakes a certain obligation.

Unilateral Contract

An agreement where one party makes a promise, but the other side does not reciprocate with a promise but with an action.

Internet Communication

The exchange of information or messages between users through the internet, utilizing various platforms and technologies.

Gratuitous Promise

A promise for which no consideration is given; not legally binding unless put in a deed or supported by some form of consideration.