For higher risk tolerance investors, it typically holds that Select one: Otheir utility indifference curve touches a higher point on the capital allocation line Otheir utility indifference curve touches the efficient frontier at a minimum variance portfolio Otheir utility indifference curve touches a lower point on the capital allocation line Othey are more risk-averse than others their utility indifference curve touches the efficient frontier at the market portfolio

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter7: Uncertainty
Section: Chapter Questions
Problem 7.11P
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For higher risk tolerance investors, it typically holds that
Select one:
Otheir utility indifference curve touches a higher point on the capital allocation line
Otheir utility indifference curve touches the efficient frontier at a minimum variance portfolio
Otheir utility indifference curve touches a lower point on the capital allocation line
Othey are more risk-averse than others
Otheir utility indifference curve touches the efficient frontier at the market portfolio
Transcribed Image Text:For higher risk tolerance investors, it typically holds that Select one: Otheir utility indifference curve touches a higher point on the capital allocation line Otheir utility indifference curve touches the efficient frontier at a minimum variance portfolio Otheir utility indifference curve touches a lower point on the capital allocation line Othey are more risk-averse than others Otheir utility indifference curve touches the efficient frontier at the market portfolio
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