1. 

   Jen L Keen member

   This isn't provided in the reading, but would given the condition for non-satiation and U''(w) = 0, would the function for a risk-neutral investor be U(w) = w? (or some other increasing linear function?)

    

   Jen L, Jul 2, 2023

   #1
2. 

   Alvin Kissoon ActEd Tutor Staff Member

   Hi Jen,
   
   Yes, exactly. The utility curve would be a straight line for a risk-neutral investor.
   
   Alvin.

    

   Alvin Kissoon, Jul 3, 2023

   #2

   Jen L likes this.

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