A risk averse investor with utility function where X denotes wealth is indifferent between purchasing a stock or a bond for $100. The bond yields a safe return of 5%. The stock has a 50% chance of yielding a -19% rate of return (a capital loss of 19% and no dividend). The risk premium on the stock is then

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A risk averse investor with utility function  where X denotes wealth is indifferent between purchasing a stock or a bond for $100. The bond yields a safe return of 5%. The stock has a 50% chance of yielding a -19% rate of return (a capital loss of 19% and no dividend). The risk premium on the stock is then

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The Answer of A risk averse investor with utility function  where X denotes wealth is indifferent between purchasing a stock or a bond for $100. The bond yields a safe return of 5%. The stock has a 50% chance of yielding a -19% rate of return (a capital loss of 19% and no dividend). The risk premium on the stock is then

A Risk Averse Investor with Utility Function Where X