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Alvin's Utility Function Is U = W

Question 105

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Alvin's utility function is U = W.Barry's utility function is U = W2.Carl's utility function is U = W0.5.Each has wealth of only $100.An investment of that $100 has a 10% chance of netting $1,000 and a 90% chance of netting a loss of that $100.Who among the three will make the investment?

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Carl's expected utility is (0.1 ∗ 1,0000.5)...

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