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Consider the risky prospect Y = (4, 16, 25; 14, 1/2, '4). The vN-M utility function of Ulises is u (2) = V . Given
Consider the risky prospect Y = (4, 16, 25; 14, 1/2, '4). The vN-M utility function of Ulises is u (2) = V . Given that EY = 15.25 and of= 55.6875. Calculate the Risk premium (Not the Arrow-Pratt approximation) of Ulises when he faces the risky prospect Y. (use two decimals)
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