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Figure 14-5

Question 27

Multiple Choice

Figure 14-5. On the graph, x represents risk and y represents return. Figure 14-5. On the graph, x represents risk and y represents return.   -Refer to Figure 14-5. 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.
-Refer to Figure 14-5. 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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