The following graph represents the relationship between the efficient set of possible portfolios and various investors. EXPECTED RATE OF RETURN (Percent) Investor Green Investor Blue Efficient Frontier 4 6 8 10 RISK (Portfolio's standard deviation) Assuming that the black line represents the efficient frontier, which of the following best describes portfolios along this line? Portfolios that yield the highest possible return at any given level of risk The set interior portfolios The set of portfolios that are unattainable Portfolios that are currently considered inefficient On the preceding graph, the green and blue lines represent the indifference curves of two investors, investor Green and investor Blue. What is a indifference curve? The required return for a given level of risk The attainable set of portfolios for each Investor The current yields of portfolios held by each investor The efficient set of portfolios for each investor Do the indifference curves shown on the preceding graph represent investor Blue's greatest possible level of satisfaction? Yes. Any point along the curve that intersects the frontier is optimal. No. Investor Blue could move to a higher indifference curve on his or her indifference map and achieve a higher level of satisfaction. There is not enough information to determine investor Blue's level of satisfaction. Yes. Each investor has only one indifference curve