Ask Question
BusinessBusiness
19 September, 09:37

An Indifference curve shows:

a. the one most desirable portfolio for a particular investor

b. all combinations of portfolios that are equally desirable to a particular investor

c. all combinations of portfolios that are equally desirable to all investors.

d. the one most desirable portfolio for all investor

+5
Answers (1)
  1. 19 September, 13:01
    0
    The correct answer to the question is option B (all combinations of portfolios that are equally desirable to a particular investor).

    Explanation:

    An indifference curve is a downward sloping graph that cannot Intersect showing two products that a consumer has no preference. Depends on the level of that consumer's income, the consumer chooses two products that give similar utility. The consumer shows no preference for any of the two products because if the products are close substitutes, it will be easier for the consumer to show no preference as they both give similar satisfaction, that is, the difference in the products is not obvious because they both serve a similar purpose to a consumer.

    An investor would consider the indifference curve of any portfolio with a good utility score considering risk and finances as the combination of portfolios which would give the most satisfaction.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “An Indifference curve shows: a. the one most desirable portfolio for a particular investor b. all combinations of portfolios that are ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Mineral-rich Zambia is one of the world's most important sources of uranium. It also is a source of copper, tin, diamonds (mainly industrial), gold, cobalt and zinc.
Answers (1)
Which of the following statements best describes a valuation allowance as it relates to accounting for income taxes? A. A valuation allowance is a contra account to deferred tax assets onlyB.
Answers (2)
Suppose that there is currently a $2 per bottle of tax on vodka that is levied on consumers. Legislators have decided to give consumers some relief by eliminating the tax.
Answers (1)
How can we prevent viruses from invading our computers We are living in a digital life. Our private information may be knew and used by others. In order to protect us from this kind of situation, We need to avoid our computer from threat.
Answers (1)
Having a savings account can contribute to a person s overall financial well-being. Which one of the following is NOT a benefit of maintaining a savings account? a. A savings account provides security in tough financial times b.
Answers (1)
New Questions in Business
A rhetorical device that uses exaggeration or overstatement to distort the facts: Answer a. sarcasm b. hyperactivity c. hypocrisy d. hyperbole
Answers (1)
True or false a study with a larger sample is more likely than a smaller study to get the result that p < 0.05
Answers (1)
Ajax Corp's sales last year were $435,000, its operating costs were $362,500, and its interest charges were $12,500. What was the firm's times-interest-earned (TIE) ratio? a. 4.72 b. 5.51 c. 5.80 d. 4.97 e. 5.23
Answers (1)
Which is an example of a demand account? A savings account B investment account C credit account (not this one) D checking account
Answers (2)
Why is it vital to maintain a designer worksheet? A. It separates the designs chosen for the season from those rejected by the company. B. It keeps a record of all designs created by the designer for a season. C.
Answers (2)
Home » Business » An Indifference curve shows: a. the one most desirable portfolio for a particular investor b. all combinations of portfolios that are equally desirable to a particular investor c.
Sign Up Forgot Password?