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Let U(x) = 1 e ^(2x) be a utility function. Consider an investment whose payoff is uniformly distributed over [1, 1]. (a) Evaluate the investment

Let U(x) = 1 e ^(2x) be a utility function. Consider an investment whose payoff is uniformly distributed over [1, 1].

(a) Evaluate the investment using the Expected Utility criterion, and find the certainty equivalent.

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