Indifference Curves Question

Will someone please explain why the blue line is above the red line left of P? What am I missing?

I would think the blue line would be below red line for all levels of SD, because the more risk averse investor would require higher returns for a given level of SD.

The infinitude of other indifference curves for each investor.

They’re showing you one curve for each; in fact there are infinitely many curves for each type, each corresponding to a different level of utility.

Yeah, I was able to work through it in Excel. I think I was failing to account for each investor having a different utility. Thanks!

My pleasure.

Happy New Year!


You too!