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2. (4 points) If u(y) denotes an individual's utility of having income (or consumption) 3;, then yu(y) y) is called the coefcient of relative risk

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2. (4 points) If u(y) denotes an individual's utility of having income (or consumption) 3;, then yu\"(y) y) is called the coefcient of relative risk aversion. (R/y is called the degree of absolute risk aversion.) R: Compute R for the following utility functions (where A1, A2, and p are positive constants with p # 1, and we assume that y > 0): Ag'ylip (a) \"(9) = A1 * 142192 (5) My) = A1 + 1 _ p

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