With respect to utility theory, the most risk-averse investor will have an indifference curve with: (a) greatest slope coefficient (b) smallest intercept value (c) most convexity The answer is A but I think C is also correct. I want to understand this mathematically. How should we measure convexity mathematically? Is this just the second derivative or the curvature? And why is C incorrect? Can anyone give a rigorous argument?
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