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In the context of expected utility theory, take as given a utility function where u(100) = -40, u(200) = -15, and u(300) = 0. Which

In the context of expected utility theory, take as given a utility function where u(100) = -40, u(200) = -15, and u(300) = 0. Which of the following statements is correct?

  1. The utility function is inadmissible because the utility of wealth cannot be negative
  2. The utility function is non-standard because it implies that more wealth is worse than less wealth
  3. The utility function could be a utility function for a risk averse investor
  4. The utility function could be a utility function for a risk-neutral investor
  5. All of the above
  6. None of the above

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