Question: An individual's utility function is typified by U = 125 + 9W^0.75 +38W^0.20, where W is their level of wealth. That individual has an investment

An individual's utility function is typified by U = 125 + 9W^0.75 +38W^0.20, where W is their level of wealth. That individual has an investment opportunity that will pay $0 with probability 0.05 or $25,000 with probability 0.95. What is the most the individual would pay to insure this investment?

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