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-John's Utility of Wealth Curve Is Shown in the Above

Question 139

Multiple Choice

-John's utility of wealth curve is shown in the above figure. He currently has wealth of $20,000. If there is a 10 percent chance of losing all his wealth, what is the value of insurance against this loss? A) $0 B) $2,000 C) $3,000 D) $17,000
-John's utility of wealth curve is shown in the above figure. He currently has wealth of $20,000. If there is a 10 percent chance of losing all his wealth, what is the value of insurance against this loss?


A) $0
B) $2,000
C) $3,000
D) $17,000

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