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21. Alice maximizes expected utility with an index ()=1.5+2.5u(x)=1.5x+2.5. She faces a gamble that pays $300 with probability 2/3 and pays nothing otherwise. Alice's cash

21. Alice maximizes expected utility with an index ()=1.5+2.5u(x)=1.5x+2.5. She faces a gamble that pays $300 with probability 2/3 and pays nothing otherwise. Alice's cash equivalent for this gamble is (A) 200;

(B) 300;

(C) 100;

(D) 450.

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