An investor is indifferent between points on a risk-return indifference curve, though not indifferent to achieving the highest curve possible.

Question

Quizplus · Accepted Answer

An investor being indifferent between points on a risk-return indifference curve means that they are willing to accept different levels of risk for different returns. However, they still prefer to be on the highest possible curve as it represents the optimal portfolio for their risk preferences.

An Investor Is Indifferent Between Points on a Risk-Return Indifference