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Microeconomics is a branch of economics that studies the market behavior of individual actors (usually firms and consumers) and the aggregation of their actions in different institutional frameworks (usually the market).

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Portfolio choice and risk aversion

Given utility function $U(w) = -e^{-w}$ of an investor (where $w$ denotes wealth) and two assets - risky and safe, will the investor's amount of investment into the risky asset be indifferent of his …
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