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If we plot the utility of a risk-averse agent versus the share of risky assets...

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Finance

If we plot the utility of a risk-averse agent versus the share of risky assets in her portfolio, we will get (choose one)

-A decreasing curve because a risk-averse agent does not like risky assets.

-An inverse-U shape curve that first increases and then decreases.

-A U-shape curve that has a minimum on the global minimum risk.

-An ever-increasing curve because more share in the risky asset means a higher return.

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