Which
of the following is true?

Question

Accepted Answer

Less risk-averse investors would choose a portfolio
that is located higher on the Capital Allocation Line

Answer

Utility
indifference curves located lower along the return axis provide higher utility

Answer

More
risk-averse investors would choose a portfolio that is located higher on the
Capital Allocation Line

Answer

Utility
indifference curves located to the right along the risk axis provide higher
utility

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