# Anna has an investment that will bring her $100 with a 30% probability and $40 with a

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## Question:

Anna has an investment that will bring her $100 with a 30% probability and $40 with a 70% probability. Anna's Utility function is U = Y^{(1/2)}. Where Y= income. Anna is considering selling this investment. What is the minimum price Anna should charge to avoid the risky investment?

**Related Book For**

## Microeconomics Theory and Applications with Calculus

ISBN: 978-0133019933

3rd edition

Authors: Jeffrey M. Perloff