Question: 7.2 Show that if an individuals utility-of-wealth function is con vex then he or she will prefer fair gambles to income cer tainty and may
7.2 Show that if an individual’s utility-of-wealth function is con vex then he or she will prefer fair gambles to income cer tainty and may even be willing to accept somewhat unfair gambles. Do you believe this sort of risk-taking behaviour is common? What factors might tend to limit its occurrence?
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