Suppose the economy can be in one of the following two states: (i) Boom or "good" state and (ii) Recession or "bad" state. Both states can occur with a probability of 1/2. Consider a risky asset that would have a price of $50 in the good state and $10 in the bad state. Two investors are evaluating this asset. The asset is currently trading at $30. The utility function of the first investor (A) is u(W) = 10 ln(W), where W is the wealth level and ln() denotes the natural logarithm function. The utility function of the second investor (B) is u(W) = 2W + 5.

What is the maximum price that investor A would be willing to pay for the risky asset?

what is the maximum price that investor B would be willing to pay for the risky asset?