Use the following scenario to answer questions 1-6. Brutus is trying to invest $1,500 in the stock market. His friend said the chance of a return of $1,000 is 0.33. The chance of a $500 return is 0.66. The chance of a zero return is 0.01.

1. What is the expected value of this investment?
   1. $660
   2. $830
   3. $495
   4. $720

2. Brutus has a utility function represented by U(x)=x^2. What is Brutus expected utility?
   1. $1,250,000
   2. $495,000
   3. $330,000
   4. $785,000

3. What is Brutus certain equivalent?
   1. $822.39
   2. $619.56
   3. $660
   4. $703.56

4. Biff the Wolverine (University of Michigans mascot) has a utility function of the form U(x)=V(x). What is Biffs expected utility for the same investment as Brutus?
   1. $10.43
   2. $84.75
   3. $25.19
   4. $63.43

5. Biff the Wolverine (University of Michigans mascot) has a utility function of the form U(x)=V(x ). What is Biffs certain equivalent for the same investment as Brutus?
   1. $660
   2. $723.88
   3. $634.72
   4. $652.88

6. Given Biffs utility function and certain equivalent, he is
   1. Risk averse
   2. Risk seeking
   3. Risk neutral
   4. None of the above