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An investor has an opportunity to play a lottery that depends on the outcome of flipping two fair coins. If both coins come up tails,

An investor has an opportunity to play a lottery that depends on the outcome of flipping two fair coins. If both coins come up tails, the lottery payoff is $0. If one coin comes up heads and the other tails, the lottery payoff is $5. If both coins come up heads, the lottery payoff is $10.

What is the maximum amount a CRRA utility investor with $10 of initial wealth and a gamma = 3 would agree to pay for participation?

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