Question: Suppose an investor has exponential utility function U(x) = exp(ax) and an initial wealth level of W. The investor is faced with an opportunity to

Suppose an investor has exponential utility function U(x) = exp(ax) and an initial wealth level of W. The investor is faced with an opportunity to invest an amount w W and obtain a random payoff x. show that his evaluation of this incremental investment is independent of W.

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