Question: S Assume that Joe's utility function is given as u(x) = 3 In(x) for x > 0 with initial consumption, 100. Jeo is facing a

S Assume that Joe's utility function is given as u(x) =

S Assume that Joe's utility function is given as u(x) = 3 In(x) for x > 0 with initial consumption, 100. Jeo is facing a game where he is going to win 60 with probability P = 0.5. If this game is an actuarially fair game, calculate the Joe's risk premium: di U Ltfen birini sein: a. Risk Premium is 20 b. Risk Premium is 19 c. Risk Premium is 21.5 d. Risk Premium is 18.25 e. Risk Premium is 18.5

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