Question: 1. By choosing several standard deviations, ranging from 0.05 to 0.25, and calculating the expected rates of return, draw the indifference curve corresponding to a

1. By choosing several standard deviations, ranging from 0.05 to 0.25, and calculating the expected rates of return, draw the indifference curve corresponding to a utility level of: a) 0.05 for an investor with a risk aversion coefficient of 3.0. b) 0.04 for an investor with a risk aversion coefficient of 4.0. c) 0.05 for a risk-neutral investor. d) What must be true about the sign of the risk aversion coefficient, A, for a "risk lover investor"? Draw the indifference curve for a utility of 0.05 for a risk lover. a Explain your answers. 1. By choosing several standard deviations, ranging from 0.05 to 0.25, and calculating the expected rates of return, draw the indifference curve corresponding to a utility level of: a) 0.05 for an investor with a risk aversion coefficient of 3.0. b) 0.04 for an investor with a risk aversion coefficient of 4.0. c) 0.05 for a risk-neutral investor. d) What must be true about the sign of the risk aversion coefficient, A, for a "risk lover investor"? Draw the indifference curve for a utility of 0.05 for a risk lover. a Explain your answers

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