Steeper indifference curve for the utility function

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Answer whether you agree to each of the following statements and explain your argument.

(a) The expected return of a risky asset is always greater than risk free rate.

(b) As variance increases, the expected return of a risky asset also increases.

(c) According to the separation property, the proportion to be invested in the optimal risky portfolio for an investor is independent of the investor's personal preference.

(d) A more risk-averse investor has a steeper indifference curve for the utility function.

Reference no: EM132952851

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