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

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6. Draw the indifference curve in the expected return–standard deviation plane corresponding to a utility level of .05 for an investor with a risk aversion coefficient of 3. (Hint: Choose several possible standard deviations, ranging from .05 to .25, and find the expected rates of return providing a utility level of .05. Then plot the expected return–standard deviation points so derived.)

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Investments

ISBN: 9780077261450

8th Edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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