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DSC3705 : 5 An investor has initial wealth of R100 000, and the utility function for monetary outcomes given by U(x) = x. She faces
DSC3705 : 5 An investor has initial wealth of R100 000, and the utility function for monetary outcomes given by U(x) = x. She faces a risk of a nancial loss of R36 000, which occurs with probability . An insurance company oers to sell a policy that costs C rands per unit of coverage. Each unit of coverage pays R1 when loss happens. Let y be the number of units of cover
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Economics Today The Macro View
Authors: Roger LeRoy Miller
19th Edition
0134478762, 978-0134478760
