Individual expected income from the project

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An individual invests in a project. He is risk averse, with a utility index v(m) = ?m??m¯, where m is the money he earns from the project. If the project succeeds, he will earn an income of m=m0 > 0, but if it fails, he gets m=0. Suppose the probability of the project succeeding is p, which is between zero and one.

-What is the individual's expected income from the project? Denote this value by

Reference no: EM132648873

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