=+7.12. Let u be a real function on [0, 1], u(x) representing the utility of the fortune x.

Consider policies bounded by 1; see (7.24). Let Q_(F) = E[u( F,)]; this repre-

sents the expected utility under the policy T of an initial fortune Fo. Suppose of a policy wo that

(7.34)

u(x) ≤2m(x), 0 gx≤1, and that

(7.35)

Q.(x) =pQr (x+1) +qQ (x-1), Osx-1xxxx+is1.