The standard deviation and expected returns for 4 portfolios (A, B, C, and D)are graphed on the following efficient frontier:
Which of the following portfolios (or combinations)are likely to be preferred by a risk-averse investor? Which of the following portfolios (or combinations)are likely to be preferred by a risk-loving investor? Explain your reasoning.

Question

The standard deviation and expected returns for 4 portfolios (A, B, C, and D)are graphed on the following efficient frontier:  
Which of the following portfolios (or combinations)are likely to be preferred by a risk-averse investor? Which of the following portfolios (or combinations)are likely to be preferred by a risk-loving investor? Explain your reasoning.

Quizplus · Accepted Answer

The Answer of The standard deviation and expected returns for 4 portfolios (A, B, C, and D)are graphed on the following efficient frontier:  
Which of the following portfolios (or combinations)are likely to be preferred by a risk-averse investor? Which of the following portfolios (or combinations)are likely to be preferred by a risk-loving investor? Explain your reasoning.

The Standard Deviation and Expected Returns for 4 Portfolios (A