Draw the indifference curve in the expected returnstandard deviation plane corresponding to a utility level of .05 for an investorwith 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 .05. Then plot the expected returnstandard deviation points so derived.)

Now draw the indifference curve corresponding to a utilitylevel of .05 for an investorwith risk aversioncoefficient A =4. Comparing your answer to the previous problem, what do you conclude?