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In this problem please round your answers totwo decimalsand enter thecorrect sign(e.g., -123.98 or +45.76). Consider an individual with a quadratic utility function (U( W
In this problem please round your answers totwo decimalsand enter thecorrect sign(e.g., -123.98 or +45.76).
Consider an individual with a quadratic utility function (U(W) = 8*W2) and wealth of 10 euros. This individual is playing a complex game G, where with 50% chance her wealth decreases to 4 euros, 40% chance it stays the same at 10 euro, and 10% chance the wealth increases to 30 euros
Calculatethe utility of obtaining the expected valuefrom "safe in hand" outcome.
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