5. Indifference curves reflectwhile the efficient set of portfolios represent a.
ID: 2806981 • Letter: 5
Question
5. Indifference curves reflectwhile the efficient set of portfolios represent a. portfolio possibilities; investor preferences. b. investor preferences; portfolio possibilities. C. d. investor preferences; portfolio return 6. According to Markowitz, an efficient portfolio is one that has the a. largest expected return for the smallest level of risk b. largest expected return and zero risk c. largest expected return for a given level of risk d. smallest level of risk 7. Portfolios lying on the upper right portion of the efficient frontier are likely to be chosen by a. aggressive investors b. conservative investors c. risk-averse investors d. defensive investorsExplanation / Answer
5) Indifference curves reflect_____ while the efficient set of portfolios represent_______ .
Answer : b. investor preferences; portfolio possibilities
6) According to Markowitz, an efficient portfolio is one that has the
Answer : c. largest expected return for a given level of risk
7) Portfolios lying on the upper right portion of the efficient frontier are likely to be chosen by
Answer : a. aggressive investors