Question 5 1 pts The optimal portfolio for a risk-averse investor: cannot be det

Question

Question 5 1 pts The optimal portfolio for a risk-averse investor: cannot be determined occurs at the point of tangency between the highest indifference curve and the highest expected return. occurs at the point of tangency between the highest indifference curve and the efficient set of portfolios. Ooccurs at the point of tangency between the highest expected return and lowest-risk efficient portfolio Question6 1 pts According to the Markowitz model, an efficient portfolio is one that has the: largest expected return for the smallest level of risk. largest expected return and zero risk. O largest expected return for a given level of risk. O smallest level of risk.

Explanation / Answer

Question 5

The optimal portfolio for a risk-averse investor occurs at the point of tangency between the highest indifference curve and the efficient set of portfolios.

Therefore, the answer is option c.

Question 6

According to Markowitz, an efficient portfolio is one that has the largest expected return for a given level of risk.

Therefore, the answer is option c.

Question 7

Portfolios lying on the upper right portion of the efficient frontier are likely to be chosen by aggressive investors.

Therefore, the answer is option a.

Question 8

The optimal portfolio is the efficient portfolio with the highest utility.

Therefore, the answer is option c.

I hope that was useful :)

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