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QUESTION
Problem 1. Do the following utility functions represent risk-averse, risk-neutral or risk-loving preferences?
Problem 1. Do the following utility functions represent risk-averse, risk-neutral or risk-loving preferences? Motivate your answers. In each question, w is the wealth.
(a) u(w) = 10w + 3
(b) u(w) = w3 + 3w
(c) u(w) = e4w
(d) u(w) = 1- e-w
