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2. Adam is risk neutral. His initial wealth is $4,000. Brianna is risk averse. Her initial wealth is 3,600 and she is facing the possibility
2. Adam is risk neutral. His initial wealth is $4,000. Brianna is risk averse. Her initial wealth is 3,600 and she is facing the possibility of losing $1,200 with probability 25%. Adam tells Brianna: \"Let us sign a contract agreeing to the following: you give me now $x (for me to keep, no matter what happens) and then if you suffer the loss I will give you $y (note: I will still keep the $36 you gave me, but I will give you $31)\". Find values of x and y such that Barbara is better off if they sign the contract (relative to not signing the contract) and Adam is indlifferent between signing the contract and not signing it
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