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Homer has the following utiltity function U ( W ) = w 2 where W is his wealth. His initial wealth is $ 2 ,

Homer has the following utiltity function U

(

) = \sqrt[]{w}

where W is his wealth. His initial wealth is $

2, 500 .

He is going on a trip where he has a

50 %

of losing $

1, 600 .

what is Homer's expected value of the trip?

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