The efficient set Theorem The optimal portfolio The optimal portfolio correspond to the point where an indifference curve is just tangent to the efficient set (WHY?) There will be only one tangency point between the investors indifference curves and the eficient set (WHy?)The Efficient Set Theorem • The optimal portfolio – The optimal portfolio correspond to the point where an indifference curve is just tangent to the efficient set. (WHY?) – There will be only one tangency point between the investor’s indifference curves and the efficient set. (WHY?)