I need help with this. I know that investor B is more risk adverse and that they will be more likely to choose the risk-free investment. I am not sure if my professor is asking for math to be done. I know how to draw most of the graph but I am unsure how to draw the two different indifference curves.

1. A particular portfolio has an expected return of .20 and a standard deviation of .20. Treasury Bills offer a sure rate of return of .07. Suppose each investor must choose to invest exclusively in either the portfolio or Bills (mixtures are not feasible). Investor A has a utility function given by U A = E (RP ) 20': , while investor B's utility is U3 = E(Rp)40':. A. Who is the more risk-averse investor, A or B? (Hint: how do the slopes of their indifference curves compare?) Please illustrate on a graph. Explain your reasoning. B. Which investment alternative will each investor choose? Does the more risk-averse investor choose the risk-free investment