Question: Question 4: Consider an actuarially fair gamble & that pays h, > 0 with probability p and with probability 1 - p. Let u be

Question 4: Consider an actuarially fair gamble & that pays h,

Question 4: Consider an actuarially fair gamble & that pays h, > 0 with probability p and with probability 1 - p. Let u be an increasing and concave utility function, and let (I, 9(2)) be between the points (uh + h2, u(up + ha)) and (who + hi, u(up thi)) on a r, y plane. Prove algebraj that g(wo) = Elu(uo + h))

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