If Ann's utility function is U = 3W0.5, and she invests in a business which can yield 6,400 with ...

Author Question: If Ann's utility function is U = 3W0.5, and she invests in a business which can yield 6,400 with ... (Read 66 times)

biggirl4568

Hero Member
Posts: 551

on: Jul 1, 2018

If Ann's utility function is U = 3W0.5, and she invests in a business which can yield 6,400 with probability 1/5, and 3600 with probability 4/5, then her Arrow-Pratt measure of risk aversion is

A) 0.5/w.
B) 1/w.
C) 1.5w.
D) 3/w.

Question 2

Which of the following is a sequential game?

A) rock-paper-scissors (Roshambo)
B) paintball
C) Monopoly
D) boxing

ndhahbi

Sr. Member
Posts: 390

Reply #1 on: Jul 1, 2018

Answer to Question 1

A

Answer to Question 2

C

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