=+b. What equation defines the certainty equivalent? Using the mathematical fact that a ln x 1 11
Question:
=+b. What equation defines the certainty equivalent? Using the mathematical fact that a ln x 1 11 2 a2 ln y 5 ln 1x a
y 112a2 2, can you express the certainty equivalent as a function x0
, x1
, and d?
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Related Book For
Microeconomics An Intuitive Approach With Calculus
ISBN: 9781337335652,9781337027632
2nd Edition
Authors: Thomas Nechyba
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