Question: An individual has the following utility function: u(w) = w0.5, where w represents the wealth. If this individual has 80% chance of getting $5000 wealth

An individual has the following utility function: u(w) = w0.5, where w represents the wealth. If this individual has 80% chance of getting $5000 wealth and 20% chance of $3000 wealth, answer the followings: a. What is the expected value of wealth? b. Calculate the utility of expected wealth. c. Calculate the expected utility of wealth. d. What is the risk preference of this individual? Explain why?

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