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Which statements about utility are true? (3 good answers) Select one or more: a. For a given investor (with a given utility function), the certainty
Which statements about utility are true? (3 good answers) Select one or more: a. For a given investor (with a given utility function), the certainty equivalence of a risky investment is the risk-free investment which provides the same utility. b. On an indifference curve of an investor's utility function, two choices provide the same utility to theinvestor. C. A utility unction (whose x-axis is wealth and y-axis is utility) should be a convex function (i.e., its second derivative to wealth is positive). This means that the speed at which utility increases with wealth accelerates with the level of wealth. d. A utility unction (whose x-axis is wealth and y-axis is utility) should have an upward slope (i.e., its first derivative to wealth is positive). This means that the investors' utility increases with their wealth. e. For a given risky investment, the more the investor is risk averse, the higher is the certainty equivalence
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