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1 2. An art collector has a utility of wealth u(w) =w31 for w > 1 and u(w) = 0 otherwise. a) Show that the

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1 2. An art collector has a utility of wealth u(w) =w31 for w > 1 and u(w) = 0 otherwise. a) Show that the art collector is: i) non-satiated and, ii) risk averse. [2 marks] b) Calculate the coefficients of risk aversion and explain what they convey. [4 marks]

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