with a risk aversion coefficient of 3. (Hint: Choose several possible standard deviations, ranging from 5% to 25%, and find the expected rates of return providing a utility level of 5%. Then plot the expected re- turn-standard deviation points so derived.) 4. Now draw the indifference curve corresponding to a utility level of 4% for an investor with risk aversion coefficient A 4. Comparing your answers to problems 3 and 4, what do you conclude? 5. Draw an indifference curve for a risk-neutral investor providing utility level 5%. 6. What must be true about the sign of the risk aversion coefficient, A, for a risk lover? Draw the indifference curve for a utility level of 5% for a risk lover.   Use the following data in answering questions 7, 8, and 9.   Utility Formula Data   Expected Standard Investment Return E(r ) Deviation   1 12% 30% 2 15 50 3 21 16 4 24 21       CFA             CFA             CFA U E(r) .005A 2 where A 4 7. Based on the utility formula above, which investment would you select if you were risk averse with A 4? a. 1. b. 2. c. 3. d. 4. 8. Based on the utility formula above, which investment would you select if you were risk neutral? a. 1. b. 2. c. 3. d. 4. 9. The variable (A) in the utility formula represents the: a. investors return requirement.