One month left to L3 exam and still confused how a manager will choose asset allocation on efficient frontier. I am confused in below two approaches. 1.A manager will choose his portfolio on the outer edge of the EF. As per his risk tolerance, manager will move up and down the EF to select best portfolio. 2. Manager tries to find out global efficient portfolio on the EF and then combines this global portfolio with RF asset as per his risk tolerance. Which one is correct approach? ( i know this is from L1 and i should know this but better late than never)