CHAPTER 21 QUIZ 16 TO 20
16. Points above the efficient frontier have superior risk-return characteristics to those along the efficient frontier, but are not part of the
feasible set.
17. Points below the efficient frontier have less desirable risk-return characteristics than those along the efficient frontier.
18. The steeper the slope on a risk-return indifference curve, the more anxious an investor is to take risks.
19. An investor is indifferent between points on a risk-return indifference curve, though not indifferent to achieving the highest curve
possible.
20. The point of tangency between the efficient frontier and the Security Market Line is considered to represent an optimum portfolio.