Question: Using the template for the Utility Function from the text, where the utility function is the constant relative risk aversion utility of wealth function U(W)
Using the template for the Utility Function from the text, where the utility function is the constant relative risk aversion utility of wealth function U(W) = W^(gamma)/gamma, set gamma to 0.5 and consider a 50-50 bet on winning 50,000 or getting nothing. What is the certainty equivalent wealth for this bet under these assumptions? O 12,500 25,000 O 30,000 O 10,000
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