The exact indifference curves of different investors
A)cannot be known with perfect certainty.
B)can be calculated precisely with the use of advanced calculus.
C)although not known with perfect certainty, do allow the advisor to create more suitable portfolios for the client.
D)cannot be known with perfect certainty and although not known with perfect certainty, do allow the advisor to create more suitable portfolios for the client.

Question

Quizplus · Accepted Answer

Indifference curves cannot be calculated precisely, but the theory does allow for the creation of more suitable portfolios for investors of differing levels of risk tolerance.

The Exact Indifference Curves of Different Investors