Assume a consumer with wealth W, which is distributed according to a density distribution of probability fW (w). Show that we can obtain an approximation of the cost of risk, CR, by using:

CR=(1/2)rr (W ) CV_{w w}

_{Where rr (w) is the coefficient of relative risk aversion measured at w, W is the mean of wealth, CVW , its coefficient of variation and W , its standard deviation. Thank you!}