Suppose we have a decision that is small, with the possible exception of risk considerations. Further suppose
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Suppose we have a decision that is small, with the possible exception of risk considerations. Further suppose constant, nontrivial risk aversion is present. If the randomness in the current decision is independent of any other randollU1ess, the decision is small; otherwise, it is large. Carefully explain. Is the staternent correct under risk neutrality?
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