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-Jennifer Has the Utility of Wealth Curve Shown in the Figure

Question 1

Multiple Choice

-Jennifer has the utility of wealth curve shown in the figure above. She owns a car worth $15,000, and that is her only wealth. There is a 10 percent chance that Jennifer will have an accident within a year. If she does have an accident, her car is worthless. What is Jennifer's expected wealth? A) $15,000 B) $12,000 C) $13,500 D) $9,000
-Jennifer has the utility of wealth curve shown in the figure above. She owns a car worth $15,000, and that is her only wealth. There is a 10 percent chance that Jennifer will have an accident within a year. If she does have an accident, her car is worthless. What is Jennifer's expected wealth?


A) $15,000
B) $12,000
C) $13,500
D) $9,000

Correct Answer:

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