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)A and C.
E)none of the above.

Question

Quizplus · Accepted Answer

The exact indifference curves of different investors cannot be known with perfect certainty, but they can be estimated based on factors such as risk tolerance, investment goals, and preferences. This information can be used to create more suitable portfolios for clients. Therefore, both option A and C are correct. Option B is incorrect because advanced calculus is not needed to estimate indifference curves.

The Exact Indifference Curves of Different Investors