The graph below combines the efficient frontier with the indifference curves for two different investors, X and Y.
Which of the following statements about the above graph is INCORRECT?
Click on the arrows to vote for the correct answer
A. B. C. D.A
Investor X has a steep indifference curve, indicating that he is risk-averse. Flatter indifference curves, such as those for Investor Y, indicate a less risk-averse investor. The other choices are true. A more risk-averse investor will likely obtain lower returns than a less risk-averse investor.