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Absolute and Relative Risk Aversion For this question, you need to work with the exponential and quadratic utility functions (given below): U(W)=eaWU(W)=a+bWcW2, where a,b, and
Absolute and Relative Risk Aversion For this question, you need to work with the exponential and quadratic utility functions (given below): U(W)=eaWU(W)=a+bWcW2, where a,b, and c are nonnegative real numbers. Part A (6 marks): Please compute the absolute and relative risk aversion measures for each utility function. Part B (6 marks): Please compute, and comment on, the first-order derivative of the ARA and RRA measures for the exponential utility function (given in Equation 3.1). Part C (6 marks): Please compute, and comment on, the first-order derivative of the ARA and RRA measures for the quadratic utility function (given in Equation 3.2). Warning: You must show all steps in the calculations for each part of this question to get full marks, this includes calculating the derivatives
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