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4. Expected utility-1.4 Consider the situation in exercise 2, but suppose now that your utility function is u(7)=50+7, where is the profit from your
4. Expected utility-1.4 Consider the situation in exercise 2, but suppose now that your utility function is u(7)=50+7, where is the profit from your investments. (a) Calculate the EU of each investment. (b) Based on your utility level, if you had the opportunity to invest in only one of these firms, which would you pick, and why?
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Intermediate Accounting
Authors: kieso, weygandt and warfield.
IFRS Edition
978-1118443965, 1118800532, 9781118800539, 978-0470873991
