8. Suppose your friend has a lottery ticket that presents the following gamble: Win $91 with a probability p Lose $10 with a probability 1-p Also assume you think p = 0.6 Calculate your risk premium,...

8.

Suppose your friend has a lottery ticket that presents the following gamble:

Win $91 with a probability p

Lose $10 with a probability 1-p

Also assume you think p = 0.6

Calculate your risk premium, if the most you are willing to pay to pay for the ticket is $20

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