Find the values of Absolute Risk Aversion (ARA) and Relative Risk Aversion (RRA) for all the cases below. .         U(C) = C0.5. .         U(C) = C2. .         U(C) = 5×C. .         U(C) = -C-2. .         U(C) = -C-7. .         U(C) = -e-7C. .         U(C) = [1/(1-a)]×C1-a , where a is a constant.

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter7: Uncertainty
Section: Chapter Questions
Problem 7.1P
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  1. Find the values of Absolute Risk Aversion (ARA) and Relative Risk Aversion (RRA) for all the cases below.

.         U(C) = C0.5.

.         U(C) = C2.

.         U(C) = 5×C.

.         U(C) = -C-2.

.         U(C) = -C-7.

.         U(C) = -e-7C.

.         U(C) = [1/(1-a)]×C1-a , where a is a constant.

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