______ curve represents a set of risk and expected return combinations that provide an investor with the same level of utility.
A) demand
B) indifference
C) supply
D) utility

Question

Quizplus · Accepted Answer

An indifference curve represents a set of risk and expected return combinations that offer the same level of satisfaction or utility to an investor. This is because investors have different risk preferences and may be willing to assume more risk for higher expected returns or vice versa. Therefore, an indifference curve can help an investor select the optimum portfolio that maximizes expected returns while minimizing risk.

______ Curve Represents a Set of Risk and Expected Return