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Q1 Calculate coefficient of relative risk aversion Rhianedd has a utility function of the form U(W) = v W. She has initial wealth of E150.

Q1 Calculate coefficient of relative risk aversion

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Rhianedd has a utility function of the form U(W) = v W. She has initial wealth of E150. She also has a lottery ticket that will pay E50 with probability 0.1 and zero otherwise. What is the certainty equivalent of the lottery for Rhianedd?Selwyn has a utility function of the form U(W) = W( 1 - x ) 1 - y , Where x=0.8. Calculate Selwyn's coefficient of relative risk aversion when his wealth is equal to $77. Round your answer to 1 decimal place

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