Question: An investor whose utility function is () is faced with a gamble offering an 80% chance of winning $5 and a 20% chance of winning

An investor whose utility function is () is faced with a gamble offering an 80% chance of winning $5 and a 20% chance of winning $30.

i. Calculate the investors utility from the mean value of the gamble ().

ii. Calculate the investors mean utility of the gamble [()].

iii. Compare the results obtained in (i) and (ii) and state the investors personality type.

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