Question: = Problem 4 Insurance (25 points) Consider an agent who is facing uncertainty about her end-of-year salary bonus. Specifically, she believes it can be either

= Problem 4 Insurance (25 points) Consider an agent who is

= Problem 4 Insurance (25 points) Consider an agent who is facing uncertainty about her end-of-year salary bonus. Specifically, she believes it can be either low or high. Thus, she faces a risky bonus bundle B = (B1, B2), where 0

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