Question: Show that the value of Y that yields indifference between the two alternatives in Figure 14.12 is within about 4% of the risk tolerance R.

Show that the value of Y that yields indifference between the two alternatives in Figure 14.12 is within about 4% of the risk tolerance R.
Figure 14.12

Show that the value of Y that yields indifference between

-Y2 $0

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