fin_week3

What month is it?

• January

• I am Groot

• Tuesday

• February

Mean-Variance Dominance...

• offers partial ranking

• offers complete ranking

• is not used for ranking

• can always be applied

Account percentage margin...

• is the net rate of return on your investment

• is the portion of the purchase price contributed by the broker

• is the portion of the purchase price contributed by the investor

• is the annual percentage increase in your investment

T-bills are financial instruments initially sold by ___ to raise funds.

• commercial banks

• the Canadian government

• state and local government

• the Canadian government and federal agencies

Assume stock A has higher expected return than stock B and higher standard deviation. Then...

• A mean-variance dominates B

• B mean-variance dominates A

• we cannot rank them

• we are indifferent between the two

.A risk-averse investor with vN-M expected utility will always value a risky investment at a price...

• equal to its expected payoff

• less than its expected payoff

• greater than its expected payoff

• of zero