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Suppose the utility function is U = E(r) 0.5A2. Draw the indifference curve corresponding to a utility level of 0.2 for an investor with a
Suppose the utility function is U = E(r) 0.5A2. Draw the indifference curve corresponding to a utility level of 0.2 for an investor with a risk aversion coefficient of 3. Please note the vertical line indicates expected return, and plot standard deviation on the horizontal line.
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