An individual investor's utility curves specify the tradeoffs he or she is willing to make between
A) high risk and low risk assets.
B) high return and low return assets.
C) covariance and correlation.
D) return and risk.
E) efficient portfolios.

Question

Quizplus · Accepted Answer

Utility curves help an investor determine their preferences for return and risk trade-offs. Therefore, the correct trade-off is between return (high or low) and risk (high or low). Option D is the only choice that mentions this trade-off.

An Individual Investor's Utility Curves Specify the Tradeoffs He or She