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The risk-return indifference curves for a risk-neutral investor (when the vertical axis captures the return and the horizontal axis captures the risk) are: straight lines
The risk-return indifference curves for a risk-neutral investor (when the vertical axis captures the return and the horizontal axis captures the risk) are:
- straight lines with slop equal to one.
- vertical lines.
- upward sloping lines that are bowed downward.
- horizontal lines.
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Principles of Microeconomics
Authors: N. Gregory Mankiw
8th edition
1305971493, 978-1305971493
