Question: Use the graph below (Figure 1) to answer question Figure 1: Use Figure 1 below to answer the question. The indifference curves 1-4 have the

Use the graph below (Figure 1) to answer question

Figure 1:

Use the graph below (Figure 1) to answer question Figure 1: Use

Use Figure 1 below to answer the question.

The indifference curves 1-4 have the same risk aversion coefficient (A). Answer the following:

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

Which curve represents the greatest utility achievable by the investor?

Which point represents the optimal complete portfolio?

Expected Risk

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