When determining an optimal portfolio, an investor would ideally plot his or her indifference curves against the

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Indifference curves represent the investor's preferred combinations of risk and return, and the efficient set represents the set of portfolios that offer the highest expected return for a given level of risk. Therefore, plotting indifference curves against the efficient set would allow the investor to identify the optimal combination of risk and return for their portfolio. The risk-free rate (A) and market portfolio (D) are not directly related to constructing an optimal portfolio, and the feasible set (C) represents all possible portfolios, not just the optimal ones.

When Determining an Optimal Portfolio, an Investor Would Ideally Plot