Question: Jens utility function with respect to wealth is U(W) = 2W. Plot her utility function. Use your figure and calculus to show that Jen is

Jen’s utility function with respect to wealth is U(W) = 2W. Plot her utility function. Use your figure and calculus to show that Jen is risk averse.

(Hint: You can also use calculus to see if she is risk averse by determining the sign of the second derivative of the utility function.) M

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