In a return-standard deviation space, which of the following statements is(are) true for risk-averse investors? (The vertical and horizontal lines are referred to as the expected return-axis and the standard deviation-axis,
Respectively.)
I. An investor's own indifference curves might intersect.
II. Indifference curves have negative slopes.
III. In a set of indifference curves, the highest offers the greatest utility.
IV. Indifference curves of two investors might intersect.
A) I and II only
B) II and III only
C) I and IV only
D) III and IV only
E) None of the options are correct.
Correct Answer:
Verified
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