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Indifference Curve. Draw an indifference curve for a risk-neutral (i.e. A = 0) investor providing utility level .01. What must be true about the sign

Indifference Curve.

  1. Draw an indifference curve for a risk-neutral (i.e. A = 0) investor providing utility level .01.

  2. What must be true about the sign of the risk aversion coefficient, A, for a risk lover? Draw the indifference curve for a utility level of .01 for a risk lover with |A| = 2.

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