constant risk aversion and value of information Repeat problem 11 above for the ease where Ralph's utilily is negative exponential, U(W) = -exp(-rW), where w is now interprcted as the net gain. Let r = .001.

(Hint: when deriving the most Ralph would pay for the information it is easiest to convert the no information and inforulation cases to certain equivalents and then take the differenee. This short eut depends on eonstant risk aversion; see the following problem.)

AppendixLO1