Question: Consider a lottery that pays $2 if n consecutive heads turn up in (n + 1) tosses of a fair coin (i.e., the sequence of

Consider a lottery that pays $2 if n consecutive heads turn up in (n + 1) tosses of a fair coin (i.e., the sequence of coin flips ends with the first tail). If you have a logarithmic utility function, U (W) = In W, what is the utility of the expected payoff? What is the expected utility of the payoff?

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