Johnathan’s utility for money is given by the exponential function: u(x)=4-4(-x/1000).
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Business, 13.11.2019 23:31 Bowied6025
Johnathan’s utility for money is given by the exponential function: u(x)=4-4(-x/1000).
a.)based on his utility function, what are his risk-odds for the $+/-1 deal, r($1)?
b.)is johnathan a delta person? explain.
c.)is he risk-neutral? explain.
d.)what are his risk-odds for the $+/-100 deal, r($100)?
e.)what is his risk-aversion coefficient?
Answers: 1
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