6. A widely-used value function to represent the value of total assets to an individual is the natural logarithm of the assets; this means that the value of total assets of amount X is proportional to ln (X) (the natural logarithm of X). This value function is sometimes referred to in economics as the “decreasing marginal utility of money” value function. What does it say about how such a person values monetary gain? Is this person risk averse or not or is it possible to tell from this much information?
Decreasing marginal utility of money