Decision Making Under Uncertainty

Consider the risky prospect Y = (4, 16, 25; 1/4, 1/2, 1/4). The vN-M utility function of Ulises is u (a ) = Vac . Given that EY = 15.25 and o = 55.6875. Calculate the Risk premium (Not the Arrow-Pratt approximation) of Ulises when he faces the risky prospect Y. (use two decimals)Consider the risky prospect Y = (4, 16, 25; 1/4, 1/2, 1/4). The vN-M utility function of Ulises is u (a ) = va . Given that EY = 15.25 and 62 = 55.6875. Calculate the Arrow-Pratt approximation of the risk premium of Ulises when he faces the risky prospect Y. (use two decimals)