$\text { Investment }$ $\quad$ $\quad$

Multiple Choice

$\text { Investment }$ $\quad$$\quad$$\quad$$\quad$$\text { A }$ $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text { B }$
\begin{array}{|l|l|l|l|l|}\hline\\begin{array}{l}\text { State } \\\text { description }\end{array} & \text { Bad state } & \text { Good state } & \text { Bad state } & \text { Good state } \\\hline \text { Probability } & 0.5 & 0.5 & 0.5 & 0.5 \\\hline \text { Payoff } & 200 & 220 & 400 & 435 \\\hline\end{array}
-Assume the information in the table regarding the probability and payoffs of assets A and B relates to an investor who has a log utility function.What does the payoff for asset B need to be in the good state to make the investor indifferent between the two assets?

A) $\$ 110.06$
B) $\$ 380.15$
C) $\$400.00$
D) $\$ 412.25$