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25 An investor with initial wealth $ and utility function 9 U(w) = Vw, w > 0, is offered the following lottery: 9 Probability of

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25 An investor with initial wealth $ and utility function 9 U(w) = Vw, w > 0, is offered the following lottery: 9 Probability of losing $1 is 25 8 3 Probability of winning $ is 3 25 11 13 Probability of winning $ is 9 25 Find the certainty equivalent. Give your answer in 3 signifi- cant figures

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