The amount of utility Alec gets from income is governed by the function U =...
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Accounting
The amount of utility Alec gets from income is governed by the function U = I. He is considering an investment that has a 40% chance of paying $900 and a 60% chance of paying $90,000. Alec's risk premium associated with this investment is:
- $54,630. - $90,000. - $17,496. - $36,864.
Pl Note- Pl mention the basic formula used.
Pl note relevant information from the question in the answer section before calculations.
Pl take care of these two point before calcualtion.
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