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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 + 10W^0.5 +20W^0.25 and also has an investment opportunity that will pay $0 with probability 0.4 or $100 with probability 0.6. What is the most that Fred will pay for insurance for this opportunity?

		$27.29
		$32.71
		$60.00
		$197.95
		$233.12

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