Question: 1. 2.12 Suppose that Irmas utility function with respect to wealth is U(W) = 100 + 100W- W2. Show that for W 6 10, Irmas

1. 2.12 Suppose that Irma’s utility function with respect to wealth is U(W) = 100 + 100W- W2. Show that for W 6 10, Irma’s Arrow-Pratt risk-aversion mea sure increases with her wealth. (Hint: See Solved Problem 16.4.) M

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