Which statement about the use of the profile model is best?
A. The profile model requires careful calculation of the percentage risk for each possible project.
B. The scale used for the profile model can be any two numerical variables that a company deems important.
C. The efficient frontier in the profile model is where return is 100% (or greater) and risk is 0%.
D. For a given level of risk, a positive move on the return axes would indicate a superior project.
Answer:D
Which statement about the use of the profile model is best?
A. The profile model requires careful calculation of the percentage risk for each possible project. B. The scale used for the profile model can be any two numerical variables that a company deems important. C. The efficient frontier in the profile model is where return is 100% (or greater) and risk is 0%. D. For a given level of risk, a positive move on the return axes would indicate a superior project.