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Consider an outcome which is either 2 or 1/2 with equal probability. What is the Certainty Equivalent of this with regard to the logarithmic utility

Consider an outcome which is either 2 or 1/2 with equal probability. What is the Certainty Equivalent of this with regard to the logarithmic utility function?

Question 11 options:

1.25

A Certainty Equivalent does not exist here

1

0.75

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