Figure 27-5.On the graph,x represents risk and y represents return.
-Refer to Figure 27-5.Point A represents a situation in which
A)all of a person's savings are allocated to a class of safe assets.
B)the person knows with certainty that his or her return will be 3 percent.
C)the standard deviation of the person's portfolio is zero.
D)All of the above are correct.

Question

Figure 27-5.On the graph,x represents risk and y represents return. 
-Refer to Figure 27-5.Point A represents a situation in which
A)all of a person's savings are allocated to a class of safe assets. 
B)the person knows with certainty that his or her return will be 3 percent. 
C)the standard deviation of the person's portfolio is zero. 
D)All of the above are correct.

Quizplus · Accepted Answer

Point A represents a situation where all savings are in safe assets, ensuring a certain return of 3% and a portfolio standard deviation of zero, as there is no risk involved.