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A property of preferences that causes an agent to prefer alternatives whose outcomes are relatively certain, even when the associated expected payoff is lower.

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Risk neutral probability for each of 3 states

I need help to find the risk-neutral probability for states 1,2 and 3 I have two stocks: A and B. The price of A today is 180 and in a year it will be worth 288 (S1), 180 (S2) or 120 (S3); The pr …
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