How much maximum person would pay to buy insurance

Reference no: EM13191868

"when I was talking about insurance, when I ask about the maximum this person would pay to buy insurance I said that it would be the risk premium: $4823.1 - Then I derived the utility in this case, with certainty this person has wealth $100,000 + $200,000 - risk premium."
What is wrong with this argument?

Reference no: EM13191868

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How much maximum person would pay to buy insurance : when I was talking about insurance, when I ask about the maximum this person would pay to buy insurance I said that it would be the risk premium: $4823.1 - Then I derived the utility in this case, with certainty this person has wealth $100,000 + $..

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