Arrow-pratt measures of risk-aversion
1. Discuss the Arrow-Pratt measures of risk-aversion, both absolute (r) and relative
2. Discuss the characteristics of optimal contracts in principal-agent problems when the agent (manager) is risk neutral.
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Discuss the Arrow-Pratt measures of risk-aversion, both absolute (r) and relative. Discuss the characteristics of optimal contracts in principal-agent problems when the agent (manager) is risk neutral.
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