单选题

Relative to an investor with a steeper indifference curve, the optimal portfolio for an investor with a flatter indifference curve will most likely have:

A、 a lower level of risk and return.
B、 a higher level of risk and return.
C、 the same level of risk and return.

【正确答案】 B

【答案解析】

B is correct because a less risk-averse investor’s highest utility, given the low slope of his indifference curve, is likely to touch the capital allocation line at a point which would represent a portfolio with higher risk and more expected return.