Evaluate quadratic utility function: U(w) = aw - bw^2 where a, b > 0. Returns utility value, marginal utility (a - 2bw), absolute risk aversion (2b/(a-2bw)), and satiation point (a/2b where marginal utility = 0). Quadratic utility exhibits increasing absolute risk aversion (IARA). Has a bliss point beyond which more wealth decreases utility. Use for mean-variance analysis and portfolio theory.
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