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Author Question: If Ann's utility function is U = 3W0.5, and she invests in a business which can yield 6,400 with ... (Read 54 times)

biggirl4568

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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

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Reply #1 on: Jul 1, 2018
Answer to Question 1

A

Answer to Question 2

C


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