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Assume that you have a logarithmic utility function for wealth () = () and that you are faced with 50/50 chance of wining or losing

Assume that you have a logarithmic utility function for wealth () = () and that you are faced with 50/50 chance of wining or losing $1,000. How much will you pay to avoid risk if your current level of wealth if $10,000? How much would you pay if your level of wealth was $1,000,000?

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