Question: Now draw the indifference curve corresponding to a utility level of .05 for an investor with risk aversion coefficient A = 4. Comparing your answer

Now draw the indifference curve corresponding to a utility level of .05 for an investor with risk aversion coefficient A = 4. Comparing your answer to Problem 6, what do you conclude?

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Repeating the analysis in Problem 6 utility is now U Er 05A 2 Er 20 ... View full answer

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