Efficient frontier

[andrnev]

In Chapter 1 on efficient frontier there is a statement that "Those who like to take risk will chose points close to M, or even points on the line FM that are beyond M". Also one cannot create a portfolio which is towards the upper left region of the efficient frontier. Question is which points can one ideally create a portfolio in? i.e. is it at all possible to create a portfolio that goes beyond the efficient frontier? i.e. in the red region?

 

[andrnev]

Apologies I realised my error in understanding. The portion in red is redundant to the point that the statement is trying to make as the straight line is the "new" efficient frontier. The straight line just wants to tell you the risk taking capacity of the investor. Lower risk averse towards F, higher risk towards M and even higher then beyond M