Find the variance

yeye12

New member
Joined
Oct 3, 2014
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3
Hiii, i need help with this:

For the stochastic variable W show that:

E [u(w)] = 10µw − 0.001µw2 - 0.001σw2 , µw = E [W]
σw2 = var(W)

I have this utility function: u(w) = 10w - 0,001w
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