8 We are going to invest $1,000 for a period of 6 months.

Two potential investments are available: T-bills and gold. If the $1,000 is invested in T-bills, we are certain to end the 6-month period with $1,296. If we invest in gold, there is a

3 4

 chance that we will end the 6-month period with $400 and a 1 4

 chance that we will end the 6-month period with $10,000.

If we end up with x dollars, our utility function is given by u(x)  x1/2. Should we invest in gold or T-bills?