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Please can you answer this 1-5 multiple choice questions? Thank you! 1. Parallel shifts in indifference curves in the direction (in the mean variance framework)
Please can you answer this 1-5 multiple choice questions? Thank you!
1. Parallel shifts in indifference curves in the direction (in the mean variance framework) represents increases in investor utility. A. south-east b. south-west c. north-east d. north-west 2. Consider the utility function U=E(r)0.005As2 For a risk averse investor, the value of A is - a. equal to zero b. greater than zero c. less than zero 3. Consider the utility function U=E(r)0.005As2 Increases in risk aversion is represented by in value of A. a. decrease b. neither c. increase 4. Consider the utility function U=E(r)0.005As2 Increases in risk aversion makes the indifference curves A. steeper b. linear c. flatter 5. Consider the utility function U=E(r)0.005As2 Which of the following is not true - a. Utility depends on investor's tolerance for risk. b. Utility increases with increases in expected return. c. Utility increases with increases in risk free rate. d. Utility decreases with increases in standard deviation. 1. Parallel shifts in indifference curves in the direction (in the mean variance framework) represents increases in investor utility. A. south-east b. south-west c. north-east d. north-west 2. Consider the utility function U=E(r)0.005As2 For a risk averse investor, the value of A is - a. equal to zero b. greater than zero c. less than zero 3. Consider the utility function U=E(r)0.005As2 Increases in risk aversion is represented by in value of A. a. decrease b. neither c. increase 4. Consider the utility function U=E(r)0.005As2 Increases in risk aversion makes the indifference curves A. steeper b. linear c. flatter 5. Consider the utility function U=E(r)0.005As2 Which of the following is not true - a. Utility depends on investor's tolerance for risk. b. Utility increases with increases in expected return. c. Utility increases with increases in risk free rate. d. Utility decreases with increases in standard deviation Step by Step Solution
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