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An individual must choose among random variables with two realizations, x and x2, with probabilities of and , respectively. She claims to choose among
An individual must choose among random variables with two realizations, x and x2, with probabilities of and , respectively. She claims to choose among such random variables by maximizing U = (1+x1)(1 + x2) 2. Is she a von Neumann-Morgenstern expected utility maximizer?
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