The risk premium,CF,measures the amount of income that an individual would give up to leave(留下)her indifference(无差异) between a risky choice and a certain one. Here,the risk premium is $4000 because a certain income of $16,000 (at point C)gives her the same expected utility (14)as the uncertain income (a 0.5 probability of being at point A and a 0.5 probability of being at point E)that has an expected value of $20,000.• The risk premium, CF, measures the amount of income that an individual would give up to leave(留下)her indifference (无差异) between a risky choice and a certain one. Here, the risk premium is $4000 because a certain income of $16,000 (at point C) gives her the same expected utility (14) as the uncertain income (a 0.5 probability of being at point A and a 0.5 probability of being at point E)that has an expected value of $20,000. •