In the investor's choice problem, the dependent and independent variables are, respectively:

A) the quantity of risk-free assets and the quantity of risky assets.
B) the return on the risk-free asset and the return on the portfolio.
C) the standard deviation of the portfolio and the return on the portfolio.
D) the standard deviation of the risky asset and the return on the risky asset.

Dependent And Independent Variables

Dependent and independent variables are fundamental concepts in statistical and experimental analysis, where the independent variable influences or predicts the dependent variable's outcomes.

Risky Asset

An investment that holds a significant chance of losing all or part of its value, generally with the potential for higher returns.

Risk-free Asset

An investment considered to have no risk of financial loss, typically associated with government bonds.