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Brian and Tony have a broker who offers them two risky investments: A or B. The broker does not allow them to divide their wealth
Brian and Tony have a broker who offers them two risky investments: A or B. The broker does not allow them to divide their wealth between the two investments. While both Brian and Tony are risk- averse, Brian chooses investment B while Tony chooses investment A. If the black lines depict Brian's and Tony's indifference curves, which of the following pair of graphs could represent Brian's and Tony's preferences? Brian's Problem Tony's Problem Standard deviation of return Standard deviation of return None of the other answers Brian's Problem Tony's Problem Standard deviation of return Standard deviation of return o Brian's Problem Tony's Problem Expected return Expected return Standard deviation of return Standard deviation of return Brian and Tony have a broker who offers them two risky investments: A or B. The broker does not allow them to divide their wealth between the two investments. While both Brian and Tony are risk- averse, Brian chooses investment B while Tony chooses investment A. If the black lines depict Brian's and Tony's indifference curves, which of the following pair of graphs could represent Brian's and Tony's preferences? Brian's Problem Tony's Problem Standard deviation of return Standard deviation of return None of the other answers Brian's Problem Tony's Problem Standard deviation of return Standard deviation of return o Brian's Problem Tony's Problem Expected return Expected return Standard deviation of return Standard deviation of return
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