
Although it appears that the locators are constrained to stay along the original curve, this is not the case: the locators are unconstrained. The fact that the curve does not change its shape is the result of constant risk aversion and the use of the

option.
Snapshot 1: a high level of constant risk aversion results in a rapid flattening of the utility function
Snapshot 2: a logarithmic utility function results when constant relative aversion is set to one
Snapshot 3: a utility function reflecting negative risk aversion