If an Investor's Indifference Curves Intersected, It Would Imply That

question 33

Multiple Choice

If an investor's indifference curves intersected, it would imply that

• A) the risk averse investor would refuse a fair bet.
• B) portfolios on two separate indifference curves would be equally desirable to the investor.
• C) the standard deviation of portfolio returns increases as returns decrease.
• D) the investor derives less additional satisfaction from each extra dollar earned.

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Definitions:

Papillary Muscles

Muscle projections from the ventricular walls of the heart that attach to the chordae tendineae and prevent inversion of the valves during contraction.

Atria Contraction

The process during the cardiac cycle where the atria chambers of the heart contract to move blood into the ventricles.

Pulse Pressure

The difference between systolic and diastolic blood pressure, indicating the force that the heart generates each time it contracts.

Ejection Phase

This is the part of the cardiac cycle during which the ventricles contract and pump blood out into the arteries.