Question: answer question 1 1. [10 marks] Consider two individuals, 1 and 2, with utility-of-wealth function, U1 (x) = x1/2 and Uz(x) = -e-0.01x (CARA utility

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1. [10 marks] Consider two individuals, 1 and 2, with utility-of-wealth function, U1 (x) = x1/2 and Uz(x) = -e-0.01x (CARA utility function) respectively, where x is wealth in dollars. For which range of values of x is person 2 more risk-averse than person 1

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