Question: Sarah has a utility function expressed as the square root of wealth (w). Currently, Sarah has an initial wealth of $2000 and faces a potential

Sarah has a utility function expressed as the square root of

Sarah has a utility function expressed as the square root of wealth (w). Currently, Sarah has an initial wealth of $2000 and faces a potential loss of $1500 with a loss probability of .15 . What is the loading charge if Sarah pays a premium of $250.00 to insure this risk? $288.75 $225.00 $42.13 $25.00

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