Author Question: The budget line in portfolio analysis shows that A) the expected return on a portfolio increases ... (Read 85 times)

jake · **on:** Jul 1, 2018

The budget line in portfolio analysis shows that

A) the expected return on a portfolio increases as the standard deviation of that return increases.
B) the expected return on a portfolio increases as the standard deviation of that return decreases.
C) the expected return on a portfolio is constant.
D) the standard deviation of a portfolio is constant.
E) a riskless portfolio will earn a zero return.

Question 2

A Giffen good

A) is always the same as an inferior good.
B) is the special subset of inferior goods in which the substitution effect dominates the income effect.
C) is the special subset of inferior goods in which the income effect dominates the substitution effect.
D) must have a downward sloping demand curve.