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2 of 29 The following table shows the relationship between your wealth (in thousands of dollars) and your utility: Wealth Utility 5 13.0 10 18.0

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2 of 29 The following table shows the relationship between your wealth (in thousands of dollars) and your utility: Wealth Utility 5 13.0 10 18.0 15 23.0 20 27.0 25 30.0 30 32,0 35 34.0 You can invest in asset A, which offers a riskless payoff of $20.000 or in asset B. which pays $10.000 with 60% probability and $30,000 with 40% probability. Which investment do you choose? OA A, because its utility is greater than the expected ulty of which is 250 OB A because its utility is greater than the expected unity of B, which is 238 OG I am indifferent between A and B because risk neutral OD. B. because its expected utility of 26 6 is greater than the utility of A Unsuro

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