The Optimal Portfolio for a Risk-Averse Investor

question 48

Multiple Choice

The optimal portfolio for a risk-averse investor:

• A)cannot be determined
• B)occurs at the point of tangency between the highest indifference curve and the highest expected return
• C)occurs at the point of tangency between the highest indifference curve and the efficient set of portfolios
• D)occurs at the point of tangency between the highest expected return and lowest risk efficient portfolios

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