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A risk averse expected utility maximiser owns a house worth y. There is a 50% chance that the house will be damaged by a storm,

A risk averse expected utility maximiser owns a house worth y. There is a 50% chance that the house will be damaged by a storm, incurring a loss of L.

suppose that the agent's utility of wealth is u(x) = ln x.

(iv) Derive the coefficients of absolute and relative risk aversion of the agent. Interpret the two measures

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