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5. Consider the utility function U(w)=awbew, where w0 is the level of wealth, and a,b are constants. (a) Derive the conditions for a and b

image text in transcribed 5. Consider the utility function U(w)=awbew, where w0 is the level of wealth, and a,b are constants. (a) Derive the conditions for a and b such that U(w) satisfies the non-satiation property. (b) Derive the conditions for a and b such that U(w) is a utility function for a risk-averse investor. (c) Sam has a utility function U(w)=3w2ew. i. Is Sam's utility classified as DARA, IARA, or CARA? ii. Is Sam's utility classified as DRRA, IRRA, or CRRA? Show all calculations clearly

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