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Fred has a utility function U = 100 + 10W 0.5 +20W 0.25 and also has an investment opportunity that will pay $0 with probability

Fred has a utility function U = 100 + 10W0.5 +20W0.25 and also has an investment opportunity that will pay $0 with probability 0.4 or $100 with probability 0.6. What is the Certainty Equivalent of this opportunity?

$27.29

$32.71

$60.00

$197.95

$233.12

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