Nicole leads an exciting life. Her wealth is a risky prospect which will take the value

$100 with probability 0.5, or $36 with probability 0.5. Her utility of wealth function is: U = W0.5.

i What is the expected value of her wealth?

ii What is the expected utility of her wealth?

iii What level of wealth with certainty will give her the same utility as the risky prospect?

iv What is the cost of the risk associated with the risky prospect?