Measures of risk aversion

Discussion in 'SP9' started by DC92, Aug 29, 2017.

  1. DC92

    DC92 Member

    Hello

    I am a little bit confused with Sweeting p 384. The formula at the top of the page for a(W) is not the same as the one found in the Tables book p43 for absolute risk aversion. Which one is correct, and should we use in the exam?

    Thanks in advance
    DC92
     
  2. Simon James

    Simon James ActEd Tutor Staff Member

    Unfortunately this is one of the typos in the original edition - the Tables and ActEd Notes are correct.
     

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