Question: To plot an indifference map by the revealed preferences method, we can first find the utility of a portfolio with 100% in the risk-free asset,
To plot an indifference map by the revealed preferences method, we can first find the utility of a portfolio with 100% in the risk-free asset, then
a.change the standard deviation of the portfolio and find the expected return the investor would require to maintain the same utility level.
b.change the risk-free rate and find the utility level that results in the same standard deviation.
c.find another utility level with 0% risk.
e.find the utility of a portfolio with 0% in the risk-free asset.find another utility level with 0% risk.
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