Question: An investor with initial wealth $20000 and utility function U(x) = ln(x) is considering an investment that has a 80% chance of gaining r% and

An investor with initial wealth $20000 and utility function U(x) = ln(x) is considering an investment that has a 80% chance of gaining r% and a 20% chance of losing s%. (1) Find in terms of r and s the certainty equivalent of this investment. (2) If s = 10, find the range of values of r for which the inve

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