Question: EMERGENCYYYYYYY Suppose my utility function for asset position x is given by u(x)=ln x. I now have $20000 and am considering the following two lotteries:

EMERGENCYYYYYYY

Suppose my utility function for asset position x is given by u(x)=ln x. I now have $20000 and am considering the following two lotteries: L1: With probability 1, I lose $6000. L2: With probability 0.6, I gain $0, and with probability 0.4, I lose $10000. What is expected utility of L1 and L2? Determine which lottery I prefer based on expected utility criterion.

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