Draw the indifference curve in the expected returnstandard deviation plane corresponding to a utility level of .02

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Draw the indifference curve in the expected return–standard deviation plane corresponding to a utility level of .02 for an investor with a risk aversion coefficient of 3. (Hint: Choose several possible standard deviations, ranging from 0 to .25, and find the expected rates of return providing a utility level of .02. Then plot the expected return–standard deviation points so derived.) p-936

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ISE Investments

ISBN: 9781266085963

13th International Edition

Authors: Zvi Bodie, Alex Kane, Alan Marcus

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