Why james would rather have sure instead of a gamble

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Suppose James has utility over wealth given by u(w) = w ^ 1/2 . Putting utility on the y-axis and wealth on the x-axis, use a graph to show why James would rather have $100 for sure instead of a gamble where he gets $20 20% of the time and $120 the rest of the time.

Reference no: EM13149830

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