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Elvira is a risk-weighted expected utility maximizer with risk function r ( p ) = p 2 and utility function u ($ x ) =log

Elvira is a risk-weighted expected utility maximizer with risk function r(p) =p2 and utility function u($x) =log2(x). Find her maximum buying price and her minimum selling price for both of the following wagers (with the probabilities given along the top).

0.5

0.4

0.1

A

$16

$32

$64

B

$32

$16

$16

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