Figure 27-6

question 98

Multiple Choice

Figure 27-6.On the graph,x represents risk and y represents return.
-Refer to Figure 27-6.Which of the following statements is correct?

• A)At point A the standard deviation of the portfolio is 3.
• B)A risk averse person always will choose to be at point A.
• C)At point D the portfolio consists of about 15 percent stocks and 85 percent safe assets.
• D)The figure shows that the greater the risk,the greater the return.

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Definitions:

Northwest-Corner Rule

A method used in transportation problems of operations research to find an initial feasible solution by allocating supplies to demands starting from the northwesternmost position.

Transportation Modeling

A method used to represent and analyze the movement of goods or services across a network, aiming to optimize routes, minimize costs, or improve efficiency.

Iterative Technique

A procedure that repeats a series of operations until a specific condition is met, often used in computing and problem-solving to refine solutions.

Degeneracy

A situation in mathematical optimization where more than one solution exists for a problem, often complicating the solution process.