Question: Using relevant formulas, numerical examples and graphical illustrations, discuss how Von Neumann/Morgenstern utilities could be utilised in making the choice and valuation decisions regarding risky

Using relevant formulas, numerical examples and graphical illustrations, discuss how Von Neumann/Morgenstern utilities could be utilised in making the choice and valuation decisions regarding risky prospects for: a) a risk-averse person b) a risk-loving person.

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