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Consider the vNM utility functions below, and argue whether the preferences they represent are risk loving, risk neutral, or risk averse. That is, determine that
Consider the vNM utility functions below, and argue whether the preferences they represent are risk loving, risk neutral, or risk averse. That is, determine that if they are strictly convex, affine, or strictly concave. Provide complete work that leads to each answer
(a) v(y) = y2 + y. (b) v(y) = 1 e(y+1).
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