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An investor has a power utility function with a coefficient of relative risk aversion of 3. Compare the utility that the investor would receive from

An investor has a power utility function with a coefficient of relative risk aversion of 3. Compare the utility that the investor would receive from a certain income of 2 with that generated by a lottery having equally likely outcomes of 1 and 3. Which does the investor prefer? Based on this result, comment on the investor's preferences towards risk, detailing the calculations and carefully explaining your answer.

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