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Download the report - Femise

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Sub-part II.1:<br />

Appendix I<br />

Appendices (to part II only)<br />

Appendices to Part II<br />

Appendix I provides <strong>the</strong> proofs to support different sections in <strong>the</strong> <strong>the</strong>oretical part. These<br />

proofs are given for <strong>the</strong> general case of risk aversion as risk neutrality is a particular case<br />

(!=1).<br />

!<br />

Demo 1: Signs of <strong>the</strong> first and second derivatives of<br />

Let<br />

So,<br />

! "%&!

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