If Ann's Utility Function Is U =3W⁰

question 90

Multiple Choice

If Ann's utility function is U =3W⁰.⁵,and she invests in a business which can yield $6,400 with probability 1/5,and $3600 with probability 4/5,then her Arrow-Pratt measure of risk aversion is

• A) 0.5/w.
• B) 1/w.
• C) 1.5w.
• D) 3/w.

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Definitions:

Sewer Lines

Pipelines specifically designed for the transportation of wastewater from homes and businesses to treatment facilities.

Solar Disinfection

A method of treating water to make it safe to drink by exposing it to sunlight, which uses UV radiation to destroy harmful pathogens.

Cloth Filtering

A method of separating particles from a fluid or air by passing it through a fabric that traps the particles.

U.S. Clean Water Act

Legislation aimed at reducing pollution and protecting the quality of water in the U.S.