Refer to Scenario 5.10. Hillary's indifference curves showing her preferences toward risk and return can be shown in a diagram. Expected return is plotted on the vertical axis and standard deviation of return on the horizontal axis
Although her indifference curves are upward sloping and bowed downward, their slope is very gradual (they are almost horizontal). These indifference curves reveal that Hillary is: A) risk neutral.
B) risk averse.
C) risk loving.
D) irrational.
B
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If N is the working-age population, Q is the labor force, and U is the number of unemployed, then the employment/population ratio is measured as
A) N/Q B) U/Q C) (Q-U)/N D) Q/N
The above figure depicts the Edgeworth box for two individuals, Al and Bruce. Part of the contract curve can be found by connecting points
A) a and b. B) a and c. C) b and d. D) c and d.
Which of the following best fits the definition of unemployed?
A) retired and not working B) working less than a full work week C) not working but looking for a job D) not working at a gainful pursuit, either in or out of the home
Which of the following is not an example of a barrier to entry?
a. Mighty Mitch's Mining Company owns a unique plot of land in Tanzania, under which lies the only large deposit of Tanzanite in the world. b. A pharmaceutical company obtains a patent for a specific high blood pressure medication. c. A musician obtains a copyright for her original song. d. An entrepreneur opens a popular new restaurant.