Assume that Mary’s utility function is U(W) = W1/3, where W is wealth. Suppose that Mary has an initial level of wealth of $27,000. How much of a risk premium would she require to participate in a gamble that has a 50% probability of raising her wealth to $29,791 and a 50% probability of lowering her wealth to $24,389?

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Q: utility function

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Q: please give me detailed info and calculations, thank you!

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