« previous next »

Author Question: If Ann's utility function is U = 3W0.5, and she invests in a business which can yield 6,400 with ... (Read 77 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


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates's recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

The people with the highest levels of LDL are Mexican American males and non-Hispanic black females.

Did you know?

The most common childhood diseases include croup, chickenpox, ear infections, flu, pneumonia, ringworm, respiratory syncytial virus, scabies, head lice, and asthma.

Did you know?

The average human gut is home to perhaps 500 to 1,000 different species of bacteria.

Did you know?

Allergies play a major part in the health of children. The most prevalent childhood allergies are milk, egg, soy, wheat, peanuts, tree nuts, and seafood.

Examples of four different types of cells from the body. Although each cell has a cell membrane, nuc Examples of four different types of cells from the body. Although each cell has a cell membrane, nuc
Fossil Fuels Energy Yield and Pollutants—Comparison Fossil Fuels Energy Yield and Pollutants—Comparison
Immunoglobulin Function Immunoglobulin Function
How to find the area of a function using limits and Riemann sums How to find the area of a function using limits and Riemann sums
Testing motor function of cranial nerve VII - Close both eyes Testing motor function of cranial nerve VII - Close both eyes
Let f be a real function with domain R. Suppose that for each ǫ > 0, there is a continuous ... Let f be a real function with domain R. Suppose that for each ǫ > 0, there is a continuous ...
Video: Blood Pressure Measurement

For a complete list of videos, visit our video library