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