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Suppose the utility function is U ( W ) = 2 + 1 . 5 l n ( W ) . i ) What is
Suppose the utility function is
i What is the utility level at wealth levels $ and $
ii Calculate the expected wealth and expected utility of a gamble that has an equal chance of
ending up with a wealth level of $ or $
iii What is the certainty equivalent of the risky prospect?
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