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MCQ11. Suppose an Xiaoyi Nie has utility function U(W)=ln(W). Her current wealth is $1,000. If she is faced with 50/50 chance of losing and winning

MCQ11. Suppose an Xiaoyi Nie has utility function U(W)=ln(W). Her current wealth is $1,000. If she is faced with 50/50 chance of losing and winning $50, how much will she pay to avoid such uncertain situation? A. 6.907 B. 1000 C. 1.255 D. 998.745

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