How to choose a portfolio from the efficient frontier?

Water Cooler Investing
#1

How do you choose a portfolio from the efficient frontier?

I know that if there exists risk-free asset, then you would combine a portfolio from the efficient frontier and the risk free asset and that would be your optimal portfolio.

But if you do not have risk-free asset, how do you choose one from the efficient frontier? In other words, how do you choose the maximum portfolio volatility?

#2

You use your risk tolerance.

#3

You find the intersection of the efficient frontier and your tangential indifference curve. This is in the CFA curriculum.

#4

Gasp. Did you just assume his financial literature

#5

CSI300, all other portfolios are inferior.

#6

This belongs in the investment forum.

#7

https://www.quora.com/How-can-you-do-portfolio-optimization-in-Excel

#8

This belongs in the CFA hookup forum.