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Your utility function is written: U (x) = x ^ (1.2). (x to the power of 1.2) We place ourselves in a context la Von
Your utility function is written: U (x) = x ^ (1.2). (x to the power of 1.2) We place ourselves in a context la Von Neumann-Morgenstern. You can buy a lottery ticket that wins 1 million euros with a 1 in 1 million chance. What is the maximum amount you are willing to pay to play this game? What about your relationship to risk?
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