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Describe Larry, Judy and Carol's Risk Preferences

Question 115

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Describe Larry, Judy and Carol's risk preferences. Their utility as a function of income is given as follows
Larry: UL(I) = 10 Describe Larry, Judy and Carol's risk preferences. Their utility as a function of income is given as follows Larry: U<sub>L</sub>(I) = 10 . Judy: U<sub>J</sub> (I) = 3I<sup>2</sup>. Carol: U<sub>C</sub> (I) = 20I.
.
Judy: UJ (I) = 3I2.
Carol: UC (I) = 20I.

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