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Other Fields Homework Help Economics Topic started by: Llanis on Oct 19, 2017



Title: Describe how the risk premium for a person with a convex utility function is determined.
Post by: Llanis on Oct 19, 2017
Describe how the risk premium for a person with a convex utility function is determined.


Title: Re: Describe how the risk premium for a person with a convex utility function is determined.
Post by: Tyforumca on Oct 19, 2017
A person with a convex utility function is risk preferring. This person will not pay a premium to avoid risk. The risk premium is zero.