 Solution

Put $r_S=2R_g$. On the midplane, circular orbit balance gives $r{\Omega }^2={\partial }_r\Phi =GM/(r-r_S{)}^2$. The specific angular momentum, specific orbital energy and orbital shear parameter of a Paczyński-Wiita circular orbit are thereforeFor a small radial displacement at fixed specific angular momentum, the effective potential stability criterion gives the radial epicyclic frequencyHere ${\kappa }_r$ is the question's epicyclic $\kappa$. Its square is negative for $2R_g<r<6R_g$, so a radial displacement grows instead of undergoing epicyclic motion. The orbit at $r_{\mathrm{in}}=6R_g$ is marginal, and the outer orbits are stable to small radial displacements. At this inner edge,This efficiency belongs to the Paczyński-Wiita potential; it is an approximation to the relativistic black-hole result.