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TRUE or FALSE [ no explanation required or expected ] LetE[ Y ]= pY (+1 p ) Y , p (0,1). Assume thatU(E[ Y ])
TRUEorFALSE[no explanation required or expected] LetE[Y]=pY(+1p)Y,p(0,1).
Assume thatU(E[Y])pE[U(Y)]p. Then, for a risk averse person, it must be the case that
U(E[Y])p>E[U(Y)]pY>0 and p(0,1).
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Real Estate Principles A Value Approach
Authors: David C Ling, Wayne Archer
5th edition
77836367, 978-0077836368
