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Commerce · Q712

Financial Management

Graduate and Post Graduate · Commerce · question 712

Q712

A curve which shows attitude towards risk just way reflected in return trade-off function is classified as

A.
difference curve
B.
indifference curve
Answer
C.
efficiency curve
D.
affectivity curve

Answer: Option B

Solution

Answer: Option B
Solution:
A curve which shows attitude towards risk just way reflected in return trade-off function is classified as indifference curve. An indifference curve is a graph that shows a combination of two goods that give a consumer equal satisfaction and utility, thereby making the consumer indifferent.