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Suppose that Natasha’s utility function is given by u (I) = 110I, where I represents annual income in thousands of dollars. a. Is Natasha risk loving, risk neutral, or risk averse? Explain. b. Suppose that Natasha is currently earning a
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Suppose that Natasha’s utility function is given by u (I) = 110I, where I represents annual income in thousands of dollars. a. Is Natasha risk loving, risk neutral, or risk averse? Explain. b. Suppose that Natasha is currently earning an income of $40,000 (I = 40) and can earn that incom...
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