-John's utility of wealth curve is shown in the above figure. He currently has wealth of $20,000. If there is a 10 percent chance that he could lose all his wealth, what is his expected wealth?
A) $0
B) $2,000
C) $17,000
D) $18,000

Question

-John's utility of wealth curve is shown in the above figure. He currently has wealth of $20,000. If there is a 10 percent chance that he could lose all his wealth, what is his expected wealth?
A) $0 
B) $2,000 
C) $17,000 
D) $18,000

Quizplus · Accepted Answer

The Answer of 
-John's utility of wealth curve is shown in the above figure. He currently has wealth of $20,000. If there is a 10 percent chance that he could lose all his wealth, what is his expected wealth?
A) $0 
B) $2,000 
C) $17,000 
D) $18,000

-John's Utility of Wealth Curve Is Shown in the Above