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Risk premium for the security

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Reference no: EM133074422

For a risk-averse investor whose risk attitude is expressed by U=ln(2*W0.5). The risk premium for the following security shall be _____________.

Outcome

Prob.

Payoff

1

20%

$100 

2

30%

$50

3

30%

$25

4

20%

$5

Reference no: EM133074422

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