Most the individual would pay to insure this investment

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An individual's utility function is typified by U = 125 + 9W 0.75 + 38W0.20, where W is their level of wealth. That individual has an investment opportunity that will pay -$80 with probability 0.99 or $25,000 with probability 0.01. What is the most the individual would pay to insure this investment?

Reference no: EM131933856

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