Question: Johnathans utility for money is given by the exponential function: U(X)=4-4 (-x/1000) . Based on his utility function, what is his risk-odds for the $+/-1

Johnathans utility for money is given by the exponential function: U(X)=4-4(-x/1000).

  1. Based on his utility function, what is his risk-odds for the $+/-1 deal, r($1)?
  2. Is Johnathan a deltaperson? Explain.
  3. Is he risk-neutral? Explain.
  4. What is his risk-odds for the $+/-100 deal, r($100)?
  5. What is his risk-aversion coefficient?

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