Question: S-13 Differentiate among the three basic risk preferences: risk-indifferent. risk-averse, and risk-seeking. Which of these attitudes toward risk best describes most investors? S-14 Describe the

S-13 Differentiate among the three basic risk preferences: risk-indifferent. risk-averse, and risk-seeking. Which of these attitudes toward risk best describes most investors?

S-14 Describe the steps involved in the investment decision process. Be sure to mention how returns and risks can be evaluated together to determine acceptable investments.

S-15 What is an efficient portfolio, and what role should such a portfolio play in investing?

S-16 How can the return and standard deviation of a portfolio be determined? Compare the calculation of a portfolio's standard deviation to that for a single asset.

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