Multiple Choice
-The above figure shows Bob's utility function.He currently has $50 and is considering investing all of it in an investment that has a 50% chance of being worth $100 and a 50% chance of being worth $0.Bob will
A) definitely make the investment because the expected utility of the investment exceeds the utility of his $50.
B) definitely not make the investment because the expected utility of the investment is less than the utility of his $50.
C) definitely make the investment because he is indifferent between having $50 and having an investment with an expected value of $50.
D) definitely not make the investment because he is indifferent between having $50 and having an investment with an expected value of $50.
Correct Answer:

Verified
Correct Answer:
Verified
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