ssume you have the following von Neumann-Morgenstem utility function: U(w)=200(121000w)2 where w denotes wealth measured in pounds. Your friend believes that the pound will drop to less than 1.05 USD per GBP by the end of 2022 while you think that there is a 75% probability that it will not. You are going to take a bet. Your friend will pay you x pounds if it does not drop to that level and you pay your friend x pounds if it does. Your current wealth is 6000, and therefore the maximum bet is 6000. According to your beliefs and expected utilities, what is the better choice, don't bet or bet 2000 ? ssume you have the following von Neumann-Morgenstem utility function: U(w)=200(121000w)2 where w denotes wealth measured in pounds. Your friend believes that the pound will drop to less than 1.05 USD per GBP by the end of 2022 while you think that there is a 75% probability that it will not. You are going to take a bet. Your friend will pay you x pounds if it does not drop to that level and you pay your friend x pounds if it does. Your current wealth is 6000, and therefore the maximum bet is 6000. According to your beliefs and expected utilities, what is the better choice, don't bet or bet 2000