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Answer clearly Jon has a utility function expressed by U(W) = w where W is Jon's wealth. Currently, Jon has W = 3120. He faces

Answer clearly

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Jon has a utility function expressed by U(W) = w where W is Jon's wealth. Currently, Jon has W = 3120. He faces potential loss L = $100 with probability p = 0.25. 1) IfJon purchases insurance for the pure premium, what is his utility? Jon now pays $25 and the insurance firm will indemnify him for $100 if he experiences the loss. His utility is, therefore

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