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corie corie
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6 years ago
Jack is near retirement and worried that if the stock market falls he will not be able to wait to take his funds out, and will have to sell at the bottom of the market. Richard thinks the probability of a stock market downturn is the same, but he is only 40 and could therefore wait for another turnaround. They face the same budget line. Jack's risk/return indifference curve
A) will be concave; Richard's will be convex.
B) will be convex; Richard's will be concave.
C) will be tangent to the budget line at a point to the left of Richard's.
D) will be tangent to the budget line at a point to the right of Richard's.
E) must still be tangent to the budget line at the same point as Richard's.
Textbook 
Microeconomics

Microeconomics


Edition: 8th
Author:
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Bart_argBart_arg
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6 years ago
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corie Author
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6 years ago
Correct Slight Smile TY
jmelchor77
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Yesterday
this is exactly what I needed
ealvino1610
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2 hours ago
I appreciate what you did here, answered it right Smiling Face with Open Mouth
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