1. How does Markowitz eliminate the no-good portfolios from that cluster? (umbrella shape in the R_{P p} plane)
2. What does he end up with after hes done eliminating those no-good portfolios? What do we call the remaining ones?
3. What are the indifference curves of an investor? Indifference to what? How do we use these indifference curves?
4. What happens when we add the risk-free asset to a portfolio of risky assets?