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You have $100 now to invest. You consume all your investment proceeds after a year. There are only two possible outcomes with equal probability: (1)

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You have $100 now to invest. You consume all your investment proceeds after a year. There are only two possible outcomes with equal probability: (1) economy boom where return on stock is 30% and return on bond is 2%; (2) recession where return on stock is -20% and return on bond Ris 2%. Your utility is U(x)=In(x). How much would you invest in stock? A. 49.7 B.68.7 C.70.5 D. 81.5

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