Steve derives utility from income/wealth as given by the function: U (W) = ln(W): Answer the following: A. Prove that this function implies that Steve's measure of relative risk aversion is constant. What is it equal to?

Steve's current wealth is $5,000, but he is faced with 40% of the chance of losing 20% of his wealth. What is the maximum amount of insurance premium Steve is willing to pay to avoid such risk?