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n.jsp: course_assessment_id=_42901_1&course_id=_197509_1&content_id=_5484830_1&step=null e Hotmail / Web Slice Gallery Imported From IE M Gmail G history - Tafuta na... YouTube Maps estion Completion Status: c. risk-neutral.

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n.jsp: course_assessment_id=_42901_1&course_id=_197509_1&content_id=_5484830_1&step=null e Hotmail / Web Slice Gallery Imported From IE M Gmail G history - Tafuta na... YouTube Maps estion Completion Status: c. risk-neutral. O d. risk-loving. QUESTION 6 Your current disposable income is $10,000. There is a 10% chance you will get in a serious car accident, incurring damage of $1,900. (There is a 90% chance that nothing will happen.) Your utili function is U = VI, where I is income. What is the most you would be willing to pay for this policy (rather than no insurance)? O a. $199 O b. $190 O c. $100 O d. $270 QUESTION 7 decision-maker is faced with a choice between a lottery with a 30% chance of a payoff of $30 and a 70% chance of a payoff of $80, and a guaranteed payoff of $65. If the decision maker's utility unction is U = VI , what is the risk premium associated with this choice? O a. $0 O b. $2.52 O c. $3.95 O d. $1.59

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