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Maria has $1 she can invest in two assets, A and B. A dollar invested in A has a 50-50 chance of returning 16 or
Maria has $1 she can invest in two assets, A and B. A dollar invested in A has a 50-50 chance of returning 16 or nothing and in B has a 50-50 chance of returning 9 or nothing. Maria's utility over wealth is given by the functionU(W)=WU(W)=WSuppose asset returns independent.
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