As the owner of a famly tarm whose wealth is $225, 000, you must choose between siting this season cut and investing $125,000 in a salo money marked fund paying 6 percent (option 1) or plartin surmer com (option 2) Plaming cogts $125,000, with a sixemonth time to harvest, If there is tain, planting summor coin will yield 5400,000 in tevenues at harvest. It thero is in drought, then plantin $375,000 in revenues it their is a drought, You are risk averse, and your preference for famly wealth (W) is specified by the relstionship) U(W)=W The probability of a summer drought is 15 percent, while the peobetisty of summer rain is a5 percent Which of the three options thould you choose? Explain You shewid choose The probability of a summer drought is 15 percent, while the probability of summer rain is 85 percent. Which of the three options should you choose? Explain. You shuld choose because it generates the highest The probability of a summer drought is 15 percent, while the probability of summer rain is 85 percent. Which of the three options should you choose? Explain. You shoould choose because it generates the highest