The Individual Investor's Optimal Portfolio Is Designated by

question 8

Multiple Choice

The individual investor's optimal portfolio is designated by

• A) the point of tangency with the indifference curve and the capital allocation line.
• B) the point of highest reward to variability ratio in the opportunity set.
• C) the point of tangency with the opportunity set and the capital allocation line.
• D) the point of the highest reward to variability ratio in the indifference curve.
• E) None of the options are correct.

---

Definitions:

Autonomy Support

is a management approach that involves understanding and encouraging employees’ self-initiated actions, promoting a sense of freedom and choice in their work.

Personal Initiative

The self-starting and proactive action that an individual takes to go beyond the basic requirements and bring about positive change.

Intrinsic Motivation

The drive to engage in activities for their own sake, deriving pleasure and satisfaction from the activities themselves rather than external rewards.

Basic Psychological Needs

Essential motivational drives related to autonomy, competence, and relatedness, which humans need to foster well-being and growth.