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Llanis Llanis
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Posts: 626
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6 years ago
Describe how the risk premium for a person with a convex utility function is determined.
Textbook 
Microeconomics

Microeconomics


Edition: 6th
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wrote...
6 years ago
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.
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