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Question 4 a ) What is the label ( name ) that you would assign to Point A on the efficient frontier? b ) If
Question a What is the label name that you would assign to Point on the
efficient frontier?
b If you wish to achieve the riskreturn combination indicated by Point
A what type of an investor are you risk lover or risk averse?
c Between points and on the efficient frontier, which one is a
better choice? Why?
d Between points A and on the efficient frontier, which one is a
better choice? Why?
e Which part of the line is efficient B to A or B to D Why?
f If your objective was to earn maximum return only, where would you
want to be on the efficient frontier? Would you really need a
portfolio? Explain briefly.
Consider the following efficient frontier and answer the questions that follow:
a What is the label name that you would assign to Point on the
efficient frontier?
b If you wish to achieve the riskreturn combination indicated by Point
A what type of an investor are you risk lover or risk averse?
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