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-Van, Whose Utility of Wealth Curve Is Shown in the Above

Question 179

Multiple Choice

-Van, whose utility of wealth curve is shown in the above figure, owns a home that is valued at $100,000. There is a 10 percent chance that the house will be destroyed by hurricane. The minimum cost of insurance in this case is A) $10,000. B) $20,000. C) $30,000. D) $40,000.
-Van, whose utility of wealth curve is shown in the above figure, owns a home that is valued at $100,000. There is a 10 percent chance that the house will be destroyed by hurricane. The minimum cost of insurance in this case is


A) $10,000.
B) $20,000.
C) $30,000.
D) $40,000.

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