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!
