Let U(x) = 1 - 2-3 be the utility function of an investor. Find the Arrow-Pratt risk aversion coefficient of U. Suppose
Posted: Wed Nov 24, 2021 10:05 am
Let U(x) = 1 - 2-3 be the utility function of an investor. Find the Arrow-Pratt risk aversion coefficient of U. Suppose a different investor has utility function V(x) = 1-2-2. Which investor is the most risk averse?