问题如下:
Which of the following is the optimal portfolio for a individual investor according to the capital market theory?
选项:
A. the combination of a risk-free asset and a risky asset with the highest expected return.
B. the combination of a risk-free asset and a risky asset with the highest indifference curve.
C. the combination of a risk-free asset and a risky asset with the highest capital allocation line slope.
解释:
B is correct.
Individuals' optimal portfolios is determined by different indifference curves, which delivers the highest utility. So CAL is tangent to the individual investor’s highest possible indifference curve.
和没太理解答案的意思,为什么是free risk asset和risky asset的组合呢