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Scenario 27-2
​
Suppose Dave Has a Utility Function U=4W1/2U = 4 W ^ { 1 / 2 }

Question 132

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Scenario 27-2
​
Suppose Dave has a utility function
U=4W1/2U = 4 W ^ { 1 / 2 } where W is his wealth in millions of dollars and U is the utility he obtains.
​
-Refer to Scenario 27-2. Is Dave risk averse? Explain.

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Yes, Dave is risk averse. The ...

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