How An Investor makes Inⅴ estment decision Second, Identify his or her indifference curve Test his or her preference on risk-return and risk tolerance Finally, identify his or her optimal portfolio Let the indifference curve touches but does not intersect the efficient setHow An Investor Makes Investment Decision • Second, Identify his or her indifference curve. – Test his or her preference on risk-return and risk tolerance. • Finally, identify his or her optimal portfolio – Let the indifference curve touches but does not intersect the efficient set