For a risk-neutral individual,with return on the X-axis and total utility on the Y-axis,slope of the total utility curve:
A)increases at an increasing rate.
B)has a constant slope.
C)increases at a decreasing rate.
D)decreases at an increasing rate.

Question

Quizplus · Accepted Answer

For a risk-neutral individual, the total utility curve will have a constant slope because the individual is not averse to risk and views all returns equally. Therefore, there is no diminishing marginal utility or increasing marginal utility, leading to a constant slope.

For a Risk-Neutral Individual,with Return on the X-Axis and Total