Problem: Define Risk Aversion. Consider a risk-averse von Neumann-Morgenstern individual having wealth w who must decide whether to accept or decline a simple gamble offering a chance of winning or losing a small amount of wealth h with probabilities p and (1-p), respectively. Prove that p must be greater than [(1/2) + (1/4)hRA (w)], where RA (w) is the individual’s measure of absolute risk-aversion, in order to induce the individual to accept the gamble.