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3. An individual's von-Neumann Morgenstern utility function is u(w) = In(w). The individual's initial wealth is $600, and the probability is 1/5 that the individual

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3. An individual's von-Neumann Morgenstern utility function is u(w) = In(w). The individual's initial wealth is $600, and the probability is 1/5 that the individual will incur a loss of $450. Insurance is available at a premium rate of 2/5 (i.e., if the individual purchases insurance that pays an amount B if the loss occurs, then the individual must pay the insurance company a total premium amounting to (2/5) whether the loss occurs or not.) How much insurance, as measured by B. will the individual purchase

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