{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-12T09:11:00-04:00", "answer_date": "2024-06-12 09:11:00", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "2785750", "url": "\/study-help\/questions\/let-rx-ux-ux-be-the-absolute-2785750", "question_creation_date_js": "2024-06-12T09:11:00-04:00", "question_creation_date": "Jun 12, 2024 09:11 AM", "meta_title": "[Solved] Let r(x) = - u''(x) \/ u'(x) be the absolu | SolutionInn", "meta_description": "Answer of - Let r(x) = - u''(x) \/ u'(x) be the absolute risk aversion coefficient and rr(x) = xr(x) the relative risk aversion coe | SolutionInn", "meta_keywords": "x,-,\/,absolute,risk,aversion,coefficient,rr,xr,relative,show,constant", "question_title_h1": "Let r(x) = - u''(x) \/ u'(x) be the absolute risk aversion coefficient and rr(x) = xr(x) the relative risk aversion coefficient. a) Show that", "question_title": "Let r(x) = - u''(x) \/ u'(x) be the absolute risk aversion", "question_title_for_js_snippet": "Let r(x) u''(x) u'(x) be the absolute risk aversion coefficient and rr(x) xr(x) the relative risk aversion coefficient a) Show that for u(x) e A(x) , the coefficient of absolute risk aversion is constant and equal to A b) Show that for u(x) (x 1 a ) (1 a) , the coefficient of relative risk aversion is constant and equal to a", "question_description": "

Let r(x) = - u''(x) \/ u'(x) be the absolute risk aversion coefficient and rr(x) = xr(x) the relative risk aversion coefficient. a) Show that for u(x) = -e-A(x)<\/sup>, the coefficient of absolute risk aversion is constant and equal to A.<\/p>

b) Show that for u(x) = (x1-a<\/sup> ) \/ (1-a) , the coefficient of relative risk aversion is constant and equal to a<\/p>", "transcribed_text": "", "related_book": { "title": "Accounting", "isbn": "176509739, 978-0176509736, 978-0176509743", "edition": "Volume 1, 2nd canadian Edition", "authors": "Carl warren, James Reeve, Jonathen Duchac, Sheila Elworthy, ", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/529.jpg", "uri": "\/textbooks\/accounting-volume-1-2nd-canadian-edition-529", "see_more_uri": "" }, "free_related_book": { "isbn": "3030767752", "uri": "\/textbooks\/computing-science-communication-and-security-second-international-conference-coms2-2021-gujarat-india-february-6-7-2021-revised-selected-in-computer-and-information-science-1st-edition-978-3030767754-374700", "name": "Computing Science Communication And Security Second International Conference COMS2 2021 Gujarat India February 6 7 2021 Revised Selected In Computer And Information Science", "edition": "1st Edition" }, "question_posted": "2024-06-12 09:11:00", "see_more_questions_link": "\/study-help\/questions\/business-marketing-2022-June-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/determine-the-prices-of-the-following-barrier-options-a-a-downandout", "description": "Determine the prices of the following barrier options. a. 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