Given the capital allocation line, an investor's optimal portfolio is the portfolio that
A)maximizes her expected profit.
B)maximizes her risk.
C)minimizes both her risk and return.
D)maximizes her expected utility.
E)None of the options

Question

Quizplus · Accepted Answer

By maximizing expected utility, the investor is obtaining the best risk-return relationships possible and acceptable for her.

Given the Capital Allocation Line, an Investor's Optimal Portfolio Is