Indifference Curves
An indifference curve plots the combinations of risk–return pairs that an investor would accept to maintain a given level of utility (i.e., the investor is indifferent about the combinations on any one curve because they would provide the same level of overall utility).
Indifference curves are thus defined in terms of a trade-off between expected rate of return and variance of the rate of return. Because an infinite number of combinations of risk and return can generate the same utility for the same investor, indifference curves are continuous at all points.
