Question: using an Exponential Utility Function, with R = $100,000, calculate the expected utility (EU), certainty equivalent (CE), and risk premium (RP) for the decision maker.
using an Exponential Utility Function, with R = $100,000, calculate the expected utility (EU), certainty equivalent (CE), and risk premium (RP) for the decision maker. Is this decision maker risk seeking, risk neutral, or risk averse?
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