Question: Use Figure 1 below to answer the question. The indifference curves 1-4 have the same risk aversion coefficient (A). a) Rank the indifference curves in

Use Figure 1 below to answer the question. The indifference curves 1-4 have the same risk aversion coefficient (A).

Use Figure 1 below to answer the question. The indifference curves 1-4

a) Rank the indifference curves in order of highest to lowest Utility.

b) According to Figure 1, portfolio E has a higher expected return than portfolio F. Is E preferable to F based on the investors utility function? Why or why not?

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