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Abigail has the utility function in Wealth U = 8 W 0.75 An investment opportunity that will pay $3,000 with probability 0.35 or $600 with
Abigail has the utility function in Wealth | ||||||||
U = | 8 | W0.75 | ||||||
An investment opportunity that will pay | $3,000 | with probability | 0.35 | |||||
or | $600 | with probability | 0.65 | |||||
What is the certainty equivalent? |
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