Utility Function and Indifference Curves | Firm | Financial Management

In this article we will discuss about the utility function of investors. Also learn about indifference curves.  Utility Function and Risk Taking: Common investors will have three possible attitudes to undertake risky course of action: (i) An aversion to risk, (ii) A desire to take risk, and (iii) An indifference to risk. The following example will clarify the risk attitude [...]