What would pay to get out of the gamble

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Reference no: EM13208292

Your current wealth level is M=49, and you are forced to make the following wager: if a fair coin comes up heads, you get 15; you lose 24 if it comes up tails. Your utility function is U(X)=sqrt(X).

A. What is your expected value of this gamble?
B. What is expected utility?
C. What is the most you would pay to get out of the gamble?

Reference no: EM13208292

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