Business math question please show everything

User Generated

Zvyynavnf

Mathematics

Description

You have a log utility function u (w) =ln (w), your current level of wealth is $5000

Suppose you’re exposed to risk will result to a 50/50 chance of winning or losing $1000.If you can buy insurance that completely removes the risk for a fee of $125 will you buy it or take a gamble.

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Explanation & Answer

Hello, I'm through with the paper. It's perfect but in case of anything you can co...


Anonymous
I was struggling with this subject, and this helped me a ton!

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