In portfolio theory, the optimal portfolio for a risk-averse investor:

Select one:

a.

cannot be determined.

b.

occurs at the point of tangency between the investor's highest feasible indifference curve and the efficient set of portfolios.

c.

occurs at the point of tangency between the highest indifference curve and the highest expected return.

d.

occurs at the point of tangency between the highest expected return and lowest risk efficient portfolios.

e.

occurs at the point of tangency between investor's highest feasible indifference curve and the minimum variance portfolio