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Question 3

Multiple Choice

\quad \quad \quad \quad \quad \quad \quad \quad \quad  Investiment A\text { Investiment } A \quad \quad \quad \quad \quad  Investment B\text { Investment } B
 Good year  Bad year  Good year  Bad year  Probability 0.800.20.900.1 Pay-off 1404511070\begin{array}{|l|l|l|l|l|}\hline & \text { Good year } & \text { Bad year } & \text { Good year } & \text { Bad year } \\\hline \text { Probability } & 0.80 & 0.2 & 0.90 & 0.1 \\\hline \text { Pay-off } & 140 & 45 & 110 & 70 \\\hline\end{array}
-Given the above information,what is the expected utility for investment B?


A) 4.4628 4.4628
B) 4.6550 4.6550
C) 4.6930 4.6930
D 4.9987 4.9987

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