风险厌恶与确定性等价

The Jensen gap

Certainty equivalent and risk premium

Measuring curvature

Applications in sequence

For a risk-averse consumer, how does EU compare with v of EM?

For v the square root, 50-50 states 225 and 25, EU equals 10. What is the certainty equivalent?

Same gamble, mean 125, certainty equivalent 100. What is the risk premium and what does it buy?

For v the square root, what happens to absolute risk aversion as wealth grows?

For v the square root and 50-50 states 121 and 81, compute the certainty equivalent, and write the number.

Same gamble, compute the risk premium, and write the number.

For v the square root and 50-50 states 49 and 169, the EU is 10. What is the certainty equivalent?

For v the square root, absolute risk aversion at wealth w is one over twice root w. What happens between 100 and 400?

For the 50-50 gamble over 100 and 36, the EU is 8 and the mean is 68. What is the risk premium?

For the 50-50 gamble over 225 and 25, what is the gap between v of the mean and the EU of 10?

For v the square root and 50-50 states 49 and 169, compute the expected utility, and write the number.

Same 50-50 gamble over 49 and 169, compute the risk premium, the mean minus the certainty equivalent, and write the number.