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Question 21 (3 points) An investor is thinking of investing his wealth. He is an expected utility maximizer with a van Neuman-Morgenstern utility function, U

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Question 21 (3 points) An investor is thinking of investing his wealth. He is an expected utility maximizer with a van Neuman-Morgenstern utility function, U (W) = W100\" , where W is his wealth. His total wealth is $24,000. With probability 0.1 the investment will be a failure and he'll lose $20,000, so that his wealth will be just $4,000. With probability 0.9 it will succeed and his wealth will grow to $x. What is the smallest value of x that would be suffcient to make this investor want to invest rather than have a wealth of $24,000 with certainty? 0 $15,000 0 $36,000 0 $75,000 0 $54,000 0 $43,000

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