Question: Suppose that an individual's utility function for money is given by u left parenthesis x right parenthesis equals left parenthesis 5 0 comma 0 0
Suppose that an individual's utility function for money is given by u left parenthesis x right parenthesis equals left parenthesis comma plus x right parenthesis to the power of third end exponent. Suppose this individual currently holds an asset which in the future will pay $ with probability $ with probability and $ with probability What is the minimum price the individual should be willing to sell this asset for?
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