Question: 2. Suppose your utility function is U(r) log(x). You are considering leasing a machine that would produce an annual profit of $10,000 with probablity p-0.4

2. Suppose your utility function is U(r) log(x). You are considering

2. Suppose your utility function is U(r) log(x). You are considering leasing a machine that would produce an annual profit of $10,000 with probablity p-0.4 or a profit of S8,000 with probability of p-0.6. What is the certainty equivalent for this random return

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