The Reward-To-Volatility Ratio Is Given by ________

question 3

Multiple Choice

The reward-to-volatility ratio is given by ________.

• A) the slope of the capital allocation line
• B) the second derivative of the capital allocation line
• C) the point at which the second derivative of the investor's indifference curve reaches zero
• D) the portfolio's excess return

---

Definitions:

Resource Demand

The demand for resources (labor, capital, land) that are used to produce goods and services.

Pure Competition

A market structure in which a very large number of firms sells a standardized product, into which entry is very easy, in which the individual seller has no control over the product price, and in which there is no nonprice competition; a market characterized by a very large number of buyers and sellers.

Equivalents

Items or entities that are fundamentally equal in value or function in the context of a specific comparison.

Profit-maximizing

The process or methodology by which a business seeks to find the best output and sales levels to achieve the highest profits possible.