Figure 27-2

Figure 27-2.On the graph,x represents risk and y represents return.
-Refer to Figure 27-2.Which of the following statements is correct?

A) At point A the standard deviation of the portfolio is 3.
B) A risk averse person always will choose to be at point A.
C) At point D the portfolio consists of about 15 percent stocks and 85 percent safe assets.
D) The figure shows that the greater the risk,the greater the return.

Correct Answer:

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