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5 of 29 1:28:47 Marks The following table shows the relationship between your wealth (in thousands of dollars) and your utility; Wealth Utility 5 11.0

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5 of 29 1:28:47 Marks The following table shows the relationship between your wealth (in thousands of dollars) and your utility; Wealth Utility 5 11.0 10 15.0 15 19.0 20 22:0 25 25.0 30 27.0 35 29.0 You can invest in asset A, which offers a riskless payoff of $20,000 or in asset B, which pays $15,000 with 40% probability and $25,000 with 60% probability. Which investment do you choose? O A. I am indifferent between A and B because I am risk neutral. O B. B, because its expected utility of 23.4 is greater than the utility of A. O C. A, because its utility is greater than the expected utility of B, which is 21.4. O D. B, because its expected utility of 22.6 is greater than the utility of A. Unsure

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