Assume constant absolute risk averse (CARA) utility (1.34). Assume that wealth is a normally distributed random...

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Assume constant absolute risk averse (CARA) utility (1.34). Assume that wealth is a normally distributed random variable with w~N (u, o). Compute the certainty equivalent ce (u, o, A, wo), where wo is the investor's initial wealth. Explain the intuition. -exp(-AW) u(W) = (1.34) A Assume constant absolute risk averse (CARA) utility (1.34). Assume that wealth is a normally distributed random variable with w~N (u, o). Compute the certainty equivalent ce (u, o, A, wo), where wo is the investor's initial wealth. Explain the intuition. -exp(-AW) u(W) = (1.34) A