Re: dse 2007

Posted by Chinni18 on Jun 11, 2012; 12:22pm
URL: http://discussion-forum.276.s1.nabble.com/dse-2007-tp7419330p7577646.html

tim
For Q22,
expected wealth w/o house insurance=(0.9)(5,00,000)+(0.1)(3,00,000)=4,80,000
Also his utility fn is concave so risk averse