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Which of the following statements regarding the Markowitz efficient frontier is least likely to be correct? The optimal portfolio for: A. an investor is the portfolio that lies on the efficient frontier and provides her with the greatest level of utility. B. an investor is found at the point of tangency between the efficient frontier and an investor’s highest utility curve. C. a more risk-averse investor will lie inside the efficient frontier but will lie outside the efficient frontier for a less risk-averse investor.
I also go for C
C. a more risk-averse investor will lie inside the efficient frontier but will lie outside the efficient frontier for a less risk-averse investor.
