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a] Suppose you have a log utility function. Suppose your current wealth W = $300,000. How much would you pay today (A) to insure yourself

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a] Suppose you have a log utility function. Suppose your current wealth W = $300,000. How much would you pay today (A) to insure yourself against a 10% probability of a $150,000 loss? b] Suppose you have a los utility function. Suppose your current wealth W = $300,000. How much we you pay today (A) to avoid a "fair gamble"I with a 50% and 50% payoff of +51000 or 431000

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