Figure 27-4 -Refer to Figure 27-4. Which of the Following Statements Is

Multiple Choice

Figure 27-4
-Refer to Figure 27-4. 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.