Question: 4. Amanda has a utility function of, U = ln(Y)where Y is income. She has an investment opportunity where there is 30% change of earning

4. Amanda has a utility function of, U =
4. Amanda has a utility function of, U = ln(Y)where Y is income. She has an investment opportunity where there is 30% change of earning $10,000, a 20% chance of earning $30,000 and a 50% chance of earning $40,000. What is the risk premium Amanda is willing to pay to insure against the uncertain outcome? 0. $4,085 b. $24,914 c. $29,000 cl. $10.12 e. N

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