An individual contemplating an investment in a portfolio of Slowpoke and Supertech faces an opportunity set or feasible set represented by the curved line in Figure 10.3.

That is, he can achieve any point on the curve by selecting the appropriate mix between the two securities. He cannot achieve any point above the curve because he cannot increase the return on the individual securities, decrease the standard deviations of the securities, or decrease the correlation between the two securities. Neither can he achieve points below the curve because he cannot lower the returns on the individual securities, increase the standard deviations of the securities, or increase the correlation. (Of course, he would not want to achieve points below the curve, even if he were able to do so.)

Were he relatively tolerant of risk, he might choose portfolio LO.1