Suppose $U(x)$ is a utility function with Arrow-Pratt risk aversion coefficient $a(x)$. Let $V(x)=c+b U(x)$. What is

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Suppose $U(x)$ is a utility function with Arrow-Pratt risk aversion coefficient $a(x)$. Let $V(x)=c+b U(x)$. What is the risk aversion coefficient of $V$ ?

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Investment Science

ISBN: 9780199740086

2nd Edition

Authors: David G. Luenberger

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Question Posted: Apr 20, 2024 12:00 PM

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Suppose $U(x)$ is a utility function with Arrow-Pratt risk aversion coefficient $a(x)$. Let $V(x)=c+b U(x)$. What is

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Investment Science

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