Question: (20 points) A manager has expressed indifference in three cases: Case For Sure or Gamble A $100,000 20% for 0, or 80% for $160,000 B

(20 points) A manager has expressed indifference in three cases: Case For Sure or Gamble A $100,000 20% for 0, or 80% for $160,000 B $100,000 35% for 40,000, or 65% for 160.000 $40,000 60% for 10,000, or 40% for 160,000 All numbers represent gains. a. Calculate the manager's utility for each $ value. (10 points) b. Is the manager risk averse, risk neutral or risk prone? Show your work. (10 points)

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