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Do the following utility functions describe risk averse, risk loving or risk neutral individuals? a. utility u(w) = 3w4 - 7 d

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Answer #1

A) risk lover

B risk averse

C risk Neutral

D risk lover

до 2 awa a) 4 (W) = 3 W4_7 Du = 123 , 0u = 36w2 >o, conuex utility funch Risk Lover 6.) U (W)= 7w7+7 au = 409 613 224 = -1.47

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