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6. Sangeeta owns an equity stake in a biotech firm that is waiting for FDA approval for a new cancer treatment. Specifically, she owns 10,000

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6. Sangeeta owns an equity stake in a biotech firm that is waiting for FDA approval for a new cancer treatment. Specifically, she owns 10,000 shares in the company. If the treatment is approved, then her 10,000 shares are worth a total of $160,000. If the treatment is not approved, then the total value of her shares is only $10,000. The probability that the FDA will approve the treatment is 0.2 . Her only income is the value of her stake in this company. Sangeeta's utility of income, x, is represented by the function w(x) = (x ) where x is the total value of her shares in the company. a) What is Sangeeta's expected income? What is her expected utility? Illustrate Sangeeta's expected utility in a diagram

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