Figure 27-2

Multiple Choice

Figure 27-2.The figure shows a utility function for Britney.
-Refer to Figure 27-2.From the appearance of the utility function,we know that

A) if Britney owns a house,she would not consider buying fire insurance.
B) Britney would prefer to hold a portfolio of stocks with an average return of 8 percent and a standard deviation of 2 percent to a portfolio of stocks with an average return of 8 percent and a standard deviation of 5 percent.
C) Britney would prefer to hold a portfolio of stocks with an average return of 8 percent and a standard deviation of 5 percent to a portfolio of stocks with an average return of 6 percent and a standard deviation of 3 percent.
D) All of the above are correct.