Business, 19.10.2021 06:30 mmassaro19

Leo owns one share of Anteras, a semiconductor chip company which may have to recall millions of chips. The stock currently trades at $100/share. Leo believes the probability that they have to recall the chips is 50%. If the chips have to be recalled, the stock price will be cut in half, but otherwise it will remain $100. The expected value of Leo's share is $ 25 . Assume Leo has the utility function, U (X )equals root index blank of X. The minimum price Leo would accept to sell his share is $ 25 . Leo's risk premium is $___.

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