Who among the three will make the investment

Reference no: EM13198440

Alvin's utility function is U(W) = W. Barry's utility function is U(W) = W^2. Carl's utility function is U (W )= sqrt(W) . Each has wealth of only $100. An investment of that $100 has a 10% chance of netting $1,000 and a 90% chance of netting a loss of that $100. Who among the three will make the investment?

Reference no: EM13198440

Questions Cloud

What was the initial population at time : the doubling period of a baterial population is 10 minutes. At time t=110 minutes, the baterial population was 90000.

Should a risk neutral firm invest or not : The launch is risky because the demand could turn out to be either low or high. If the demand is high, the investment would give a return of $30 million, and if the demand is low, the return would be 0.

Should she send the two articles together in same package : Lori, who is risk averse, has two pieces of jewelry, each worth $400. She wants to send them to her sister in Mexico. She is concerned about the safety of shipping them. She believes that the probability that a shipped package will not arrive is q..

Adolescent smoker-construct of the health belief model : An adolescent smoker might think lung cancer only happened to old people. This is an example of which construct of the Health Belief Model?

Who among the three will make the investment : Barry's utility function is U(W) = W^2. Carl's utility function is U (W )= sqrt(W) . Each has wealth of only $100. An investment of that $100 has a 10% chance of netting $1,000 and a 90% chance of netting a loss of that $100.

An earth orbiting satelite has closest approach altitude : An Earth orbiting satelite has closest approach altitude of 1000km. The velocity at this point is 8km/s. Find the following elements:

Where did the idea of the modern nation-state come from : Do you know the treaties for the creation of the EU? Who was Mackinder and what did he think about world peace in the early 20th century? Where did the idea of the modern nation-state come from?

How much would johnny be willing to pay for an insurance : For what values of a is he risk averse, risk neutral, and risk loving? From now on, assume that a = 1/2. Johnny owns a house that would cost $100,000 to replace should it ever be destroyed by fire.

Hidden job market assignment : A variety of sources estimate that perhaps 85% of all job openings are not advertised online or in the newspapers. This helps lend credibility to the statement "It is not what you know but who you know". With this in mind it is necessary for job seek..

User Account

All Pages