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t ihe ericient set of porttolios The following graph represents the relationship between the efficient set of possible portfolios and various investor EXPECTED RATE OF

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t ihe ericient set of porttolios The following graph represents the relationship between the efficient set of possible portfolios and various investor EXPECTED RATE OF RETURN Percent) 10 6 Investor Investor Green Blue Efficient Frontier 10 RISK (Portfolio's standard deviation) Assuming that the black line represents the efficient frontier, which of the following best describes portfolios along this line? On the preceding graph, the green and blue lines represent the indifference curves of two investors, investor Green and investor Blue. Whicn of these investors is more risk averse? O Portfolios that yield the highest possible O Not enough information is given. return at any given level of risk Portfolios that are currently considered inefficient O Investor Green is more risk adverse. Investor Blue is more risk adverse. They are equally risk averse. O The set interior portfolios O The set of portfolios that are unattainable In terms of the investment, the highest level of satisfaction the investor can attain is represented by which part of the graph? O The highest point of each investor's indifference curve O The tangency between the investor's indifference curve and the efficient frontier O The highest point of the efficient frontier O All points to the left of the efficient frontier

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