Your usual income is 100 but there is a 30 chance that you
Suppose you have a utility of money function of the form U=10$1/2. Your usual income is $100, but there is a 30% chance that you will lose $64 dollars. What is the certainty equivalent of this risky situation?
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suppose you have a utility of money function of the form u1012 your usual income is 100 but there is a 30 chance that
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suppose you have a utility of money function of the form u102 your usual income is 100 but there is a 30 chance that
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