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An individual with a current wealth of w and utility function u(x) = 1-e-x/100 has to choose between two investment alternatives: one safe and one

An individual with a current wealth of w and utility function u(x) = 1-e-x/100 has to choose between two investment alternatives: one safe and one risky. The safe alternative returnsx 0 for sure whereas the risky one returnsx + 200 with probability 0.7 and 2x - 200 with probability 0.3. Calculate the maximum price that the individual would be willing to pay for perfect information on the return of the risky alternative before making the investment decision.

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