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Xander Kreck, a Martian, says he(?) is risk-neutral. Suppose 0 is the utility he attaches to M$100,000 and 1 is the utility he attaches to
Xander Kreck, a Martian, says he(?) is risk-neutral. Suppose 0 is the utility he attaches to
M$100,000 and 1 is the utility he attaches to M$200,000. If what he says is true, what is the
utility he attaches to M$400,000 and -M$20,000?
Source: Adapted from Allen et al, Chapter 13, Problem number 5.
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