Persons, À and B,expectel utilityand B, dp (m) = In (wt).bo th risk awera. A'sfunition is Un Cm) eh (wt),ln (ut).areWho ismore riskaverse ?

Answered: ® Persons, A and B, awe both risk…

® Persons, A and B, awe both risk expestel uhility functiom is Un Can) = m(wt), and B, d, (w) = Im (wt). are %3D Who is move risk aerse!

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Persons, À and B,
expectel utility
and B, dp (m) = In (wt).
bo th risk awera. A's
funition is Un Cm) eh (wt),
ln (ut).
are
Who is
more risk
averse ?

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