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Question:

Boswell is less risk-averse than Johnson. Using the same capital allocation line for Boswell and Johnson, Boswell will have:

A an optimal portfolio with a higher expected return than Johnson.
explanation

Compared to a more risk-averse investor, a less risk-averse investor will have a lower risk aversion coefficient, flatter risk return indifference curves, and an optimal portfolio with greater risk and a higher expected return.

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