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Kudos AI

The Utility of Money and Risk

Why the utility curve for money bends, what its curvature means, and how to put a number on a preference - including the uncomfortable ones.

IntermediateModule 225 min · 100 XP
A logarithmic utility curve with a chord drawn between two outcomes, the chord sitting below the curve, and the horizontal gap that opens up read off as the risk premium.

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