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Esra's utility of wealth function is VM. Esra has 2 investment options. One is putting the money in the bank with a yearly return

 

Esra's utility of wealth function is VM. Esra has 2 investment options. One is putting the money in the bank with a yearly return of %10. This is a sure outcome. On the other hand, Esra can invest in a stock bond. The bond returns % 30 percent on Esra's investment in good states, in bad states however Esra losses everything. The probability of a good state is %50. Esra is thinking of investing 100.000 dollars. Which investment option do you think she will choose? Then, she meets Jack. He is the investment guru. He can for sure tell whether it is a good state or not, but of course with a fee, P. Write down the equation which helps us determine the maximum amount of P Esra is willing to pay to Jack to get that information.

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