Question
1. An agent with wealth W having the utility function U(x) = x3 for x > 0 is facing a random loss X. Show that
1. An agent with wealth W having the utility function U(x) = x3 for x > 0 is facing a random loss X. Show that the agent is risk averse.
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Macroeconomics
Authors: Paul Krugman, Robin Wells, Iris Au, Jack Parkinson
3rd Canadian edition
1319120083, 1319120085, 1319190111, 9781319190118, 978-1319120054
