Question: Mary's utility function is U(W) = W0.33, where W is wealth. Is she risk averse? Mary has an initial wealth of $27,000. How much of

Mary's utility function is U(W) = W0.33, where W is wealth. Is she risk averse? Mary has an initial wealth of $27,000. How much of a risk premium would she require to participate in a gamble that has a 50% probability of raising her wealth to $29,791 and a 50% probability of lowering her wealth to $24,389?

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