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Please show full solution 7. My utility function is u(w)=ln(w). The random wealth W is equally likely to be $800 or $1200. (a) Compute my

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Please show full solution

7. My utility function is u(w)=ln(w). The random wealth W is equally likely to be $800 or $1200. (a) Compute my certainty equivalent for W. (b) Compute my risk premium for W

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