The risk premium and the probability premium are used to determine appropriate coefficients of absolute risk aversion under CARA utility. A defensible range of risk aversion coefficients is defined by the coefficients that correspond to risk premiums falling between 1 and 99% of the amount at risk or to probability premiums falling between . 005 and. https://lockdownsecuritycanada.shop/product-category/siren-bluetooth-with-tilt-shock/
Risk and Probability Premiums for Cara Utility Functions
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