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Information: In-Class Exercise (Adapted from Nicholson and Synder, 11th edition) 1. (adapted from 18.4) Suppose there is a 50-50 chance that an individual with logarithmic

Information: In-Class Exercise (Adapted from Nicholson and Synder, 11th edition) 1. (adapted from 18.4) Suppose there is a 50-50 chance that an individual with logarithmic utility from wealth and with a current wealth of $20,000 will suffer a loss of $10,000 from a car accident. Insurance is competitively provided at actuarially fair rates

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