Jim Holtzhauer Is Playing the Tables at Vegas

Multiple Choice

Jim Holtzhauer is playing the tables at Vegas. He currently has $10,000, which I will denote as 10K in order to keep things simple. He is looking at a bet where with ½ chance he can win 6K while with ½ chance he will lose 2K. Jim's utility of wealth function is given by U(W) = (W) ^2. (U(W) is equal to the W Squared) . Based on this information, you would conclude that:

A) Jim will accept the gamble since his expected utility from accepting the gamble is 160K^2 while the expected utility from keeping the 10K is 100K^2.
B) Jim will not accept the gamble since his expected utility from accepting the gamble is 100K^2 while the expected utility from keeping the 10K is 160K^2.
C) Jim will not accept since he is risk averse.
D) Jim's Certainty Equivalent is [(1/2) *4K2+(1/2) 36K2].