Essay
Mary runs her own small business,and has a utility function for assets of:
U(A)= 22A - 0.07A2‚ for all 0≤ A ≤ 100,where 'A' denotes total assets in thousands of dollars.
(a)Describe Mary's attitude toward risk.
Correct Answer:
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Mary shows increasing risk aversion.As h...View Answer
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Correct Answer:
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