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2. Relative and absolute risk aversion Consider a consumer with each of the following utility functions: i) u(x) = -e^(-x) ii) u(x) = ln(x) iii) u(x) = x^(1/2)2a. For each of the utility functions above, compute the coefficient of absolute risk aversion and the coefficient of relative risk aversion. The consumer faces one of two possible risks: La: with probability 1/2, no loss occurs, and with probability 1/2, a loss of 10 occurs. Lb: with probability 1/2, no loss occurs, and with probability 1
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