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What is the most amount of money the consumer would be willing to pay to play take this gamble?
Suppose a consumer has log-utility over wealth, defined by $u(W) = \ln(W)$. Suppose this consumer has $100$, and is considering taking a gamble in which the consumer flips a coin, and gets $20$ she ...
Feb 15 at 6:08
newest calculation interest-rates questions feed
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