An investor's preferences regarding expected return and risk can be illustrated using:
A)yield curves.
B)a normal distribution.
C)indifference curves.
D)an efficient portfolio.

Question

Quizplus · Accepted Answer

Indifference curves depict an investor's preferences between return and risk. These curves show combinations of expected return and risk that an investor is indifferent between. Higher curves indicate a greater level of risk tolerance and a higher desired return. The shape and location of the curve vary for each individual investor.

An Investor's Preferences Regarding Expected Return and Risk Can Be