題組內容

四、Both Gigi and Helen maximize the expected utility, with a (Bernoulli) utility function $u(x) = \ln x$, wherex is the amount of money they can enjoy. Each of them has an initial wealth $10, but may suffer from an accident that occurs with probability 1/4.



1. _________(3%) Are they risk neutral, risk loving, risk averse, or none of these?