Explain the notion of risk premium

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Question: What are the assumptions that allow the formulation of risk analysis about output price and input quantities as a quadratic programming model?

(a) Explain the notion of risk premium.

(b) Explain the notion of certainty equivalent.

(c) Explain the notion of risk aversion.

(d) Explain the specification of the corresponding QP model.

Reference no: EM131483815

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