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a) (3)) Consider two investments X and Y, where X pays $0 and $10 with equal probability and Y pays 0 with probability 0.75 and

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a) (3)) Consider two investments X and Y, where X pays $0 and $10 with equal probability and Y pays 0 with probability 0.75 and $20 with probability 0.25. What investment would an investor choose if her utility function is (0) (ii) (ii) u(x) = x2 u(x) = u(x) = 1-e * = X

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