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Business, 13.11.2019 23:31 Bowied6025

Johnathan’s utility for money is given by the exponential function: u(x)=4-4(-x/1000).

a.)based on his utility function, what are his risk-odds for the $+/-1 deal, r($1)?

b.)is johnathan a delta person? explain.

c.)is he risk-neutral? explain.

d.)what are his risk-odds for the $+/-100 deal, r($100)?

e.)what is his risk-aversion coefficient?

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Johnathan’s utility for money is given by the exponential function: u(x)=4-4(-x/1000).

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