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-Beachcomber Beatrice Spent Her Entire Wealth of $100,000 to Build

Question 201

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-Beachcomber Beatrice spent her entire wealth of $100,000 to build a beach house on the Gulf of Mexico. There is a 10 percent chance that the house will be totally destroyed by a hurricane. Beatrice's utility of wealth schedule is given in the table above. What is Beatrice's expected wealth? A) $10,000 B) $50,000 C) $90,000 D) $100,000
-Beachcomber Beatrice spent her entire wealth of $100,000 to build a beach house on the Gulf of Mexico. There is a 10 percent chance that the house will be totally destroyed by a hurricane. Beatrice's utility of wealth schedule is given in the table above. What is Beatrice's expected wealth?


A) $10,000
B) $50,000
C) $90,000
D) $100,000

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