If X₁ + X₂ ≤ 500y₁ and Y₁ Is 0-1,then

question 48

True/False

If x₁ + x₂ ≤ 500y₁ and y₁ is 0-1,then if y₁ is 0,x₁ and x₂ will be 0.

---

Definitions:

Capital Allocation Line

A line on a graph that shows the risk-reward ratio of different portfolios, helping investors understand their options for achieving a desired balance.

Risk-averse Investors

Investors who prefer to minimize uncertainty and potential loss in their investment choices, often opting for safer, more predictable investments.

Optimal Risky Portfolio

The combination of investments that provides the highest expected return for a given level of risk or the lowest risk for a given level of expected return.

Expected Utility

A theory in economics that assesses the utility or satisfaction an agent expects to receive from different outcomes, taking into account their risk preferences.