Plot the Risk Sensitivity profile for the following two deals. Hint: The Risk-Sensitivity profile is a...
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Plot the Risk Sensitivity profile for the following two deals. Hint: The Risk-Sensitivity profile is a plot of the certain equivalent of a deal vs, the risk aversion coefficient, y. Draw the plot from y=-1 to y=+1 Deal A Deal B $80 $90 .30 .10 20 .30 $70 $50 .50 .60 $20 Plot the Risk Sensitivity profile for the following two deals. Hint: The Risk-Sensitivity profile is a plot of the certain equivalent of a deal vs, the risk aversion coefficient, y. Draw the plot from y=-1 to y=+1 Deal A Deal B $80 $90 .30 .10 20 .30 $70 $50 .50 .60 $20
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