The optimal portfolio on the efficient frontier for a given investor depends on
A)the investor's degree of risk tolerance.
B)the coefficient,A,which is a measure of risk aversion.
C)the investor's required rate of return.
D)A and C.
E)A and B.

Question

Quizplus · Accepted Answer

The optimal portfolio on the efficient frontier is determined by a combination of the investor's level of risk aversion (represented by the coefficient, A) and the required rate of return. Therefore, options A and C are both essential factors in determining the optimal portfolio. Thus, the answer is option E (A and B).

The Optimal Portfolio on the Efficient Frontier for a Given