Investor A has the utility function U(W) = 2W 2 . Investor B has the utility function U(W) = 2W 1/2 . Calculate the sure level of wealth (certainty equivalent) that has a utility identical to this...


Investor A has the utility function U(W) = 2W2. Investor B has the utility function U(W) = 2W1/2. Calculate the sure level of wealth (certainty equivalent) that has a utility identical to this investment for each investor and provide an explanation for your results.

















ProbabilityAmount
0.725,000
0.315,000


Jun 03, 2022
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