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

question 132

Essay

Scenario 27-2
​
Suppose Dave has a utility function
$$U = 4 W ^ { 1 / 2 }$$ 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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Definitions:

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