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Depict a utility function in an appropriate diagram displaying risk aversion. Consider a gamble with only two final wealth outcomes. Show in your graph the
Depict a utility function in an appropriate diagram displaying risk aversion. Consider a gamble with only two final wealth outcomes. Show in your graph the (i) expected utility, the (ii) utility of the expected value, the (iii) risk premium, and the (iv) certainty equivalent in a consistent manner.
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