11. [6} An individual's levI utility for money is u(x) = In x\

11. [G] An individual's vNM utility for money is u(x) = Inxa, where x is the individual's final wealth and a > 0 is a parameter. His initial wealth is $100. Which of the following statements is true concerning Lotteries 1-3? Hint: Use natural log rules. A B. C D. Lottery 1: With 25% probability, he receives $44. With 75% probability, he loses $10. Lottery 2: With 50% probability, he receives $36. With 50% probability he loses $36. Lottery 3: With 100% probability, he keeps his money. Lottery 1 will never be preferred. Lottery 1 will always be preferred. Lottery 1 will be preferred if a > 0.997 None of the above statements is true.