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Suppose a DM has the following endowment of contingent consumption: ($20, $50), where the probability of state 1 is 0.2. Suppose insurance is offered at

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Suppose a DM has the following endowment of contingent consumption: ($20, $50), where the probability of state 1 is 0.2. Suppose insurance is offered at a premium of 50 cents per dollar. Write down the dollar value of his contingent consumption, if he hypothetically sells his entire endowment at the market price. Assume state 2 consumption is priced at p2 = 1

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