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An investor has the following CRRA utility function: U(W) = 2W 0.5 . She would like to maximize expected utility of terminal wealth. Her current

An investor has the following CRRA utility function: U(W) = 2W^0.5. She would like to maximize expected utility of terminal wealth. Her current portfolio will lead to a terminal wealth of $100 thousand with probability 0.35 and $1 million with probability 0.65. Find the certainty equivalent wealth?

$511,100

$578,633

$653,243

$989,992

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