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Figure 19.3.1 -Refer to Figure 19.3.1 Above. the Slope of the Perceived

Question 79

Multiple Choice

Figure 19.3.1 -Refer to Figure 19.3.1 above. The slope of the perceived budget line is steeper because the investor: A) decides to invest more in the risk-free asset and less in the stock market. B) perceives an increase in the standard deviation of the return in the stock market . C) perceives the riskiness of stocks to be smaller than it really is. D) becomes more risk averse. Figure 19.3.1
-Refer to Figure 19.3.1 above. The slope of the perceived budget line is steeper because the investor:

A) decides to invest more in the risk-free asset and less in the stock market.
B) perceives an increase in the standard deviation of the return in the stock market .
C) perceives the riskiness of stocks to be smaller than it really is.
D) becomes more risk averse.

Correct Answer: