# Question

Let c be consumption. Under what conditions on the parameters λ0 and λ1 could the following functions serve as utility functions for a risk-averse investor? (Remember that marginal utility must be positive and the function must be concave.)

a. U(c) = λ0 exp (λ1c)

b. U(c) = λ0cλ1

c. U(c) = λ0c + λ1c2

a. U(c) = λ0 exp (λ1c)

b. U(c) = λ0cλ1

c. U(c) = λ0c + λ1c2

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