Jeff Holds $50,000 Wealth Which Has a Utility of 7

Multiple Choice

Jeff holds $50,000 wealth which has a utility of 7.07 utils (assuming utility is the square root of wealth in thousand dollars) .He considers investing this in a gamble which has a 0.6 probability of increasing his total wealth to $100,000 and 0.4 probability of decreasing it to $30,000.What will be Jeff's expected utility from the gamble?

A) 15 utils
B) 8.19 utils
C) 3.2 utils
D) 12.12 utils