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By reading the explanation and example of Modern Portfolio Theory (Markowitz, 1952) from this link, I saw a picture as below enter image description here

From this website, I also see

The portion of the minimum-variance curve that lies above and to the right of the global minimum variance portfolio is known as the Markowitz efficient frontier as it contains all portfolios that rational, risk-averse investors would choose. (...). As we move to higher levels of risk, the resulting increase in return begins to diminish. The slope begins to flatten.

I understand the idea of the document. I understand the rational investors will follow this portfolio construction. However, why the risk-averse also would choose this one. I am wondering which type of investors would not choose the Markowitz efficient frontier ( in the meaning of opposite to risk-averse (e.g. high risk-takers))? In another word, why risk-takers will not choose this efficient frontier ?

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  • $\begingroup$ Thank @H2ONaCl, I just edited the question, could you please have a look again. Many thanks and warmest regards. $\endgroup$ Dec 9, 2021 at 21:38
  • $\begingroup$ The Palgrave Dictionary of Economics has "An agent, perhaps an individual or a firm, is said to be risk averse if the agent prefers a deterministic outcome equal to the expectation of a risky outcome over that risky outcome." One assumption of economics is that people are rational but since gambling exists, economists probably would put their analysis in the category of "behavioral economics". $\endgroup$
    – H2ONaCl
    Dec 10, 2021 at 3:29

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