Question: How do I properly write the Bayes' formula in symbol? I am having trouble understanding how to properly structure the formula. Assume an investor has

How do I properly write the Bayes' formula in symbol? I am having trouble understanding how to properly structure the formula.

Assume an investor has prior subjective probabilities of a firm's future economic performance being High as p(H)=.25, and for the same firm has prior subjective probabilities of future performance being low as p(L)=.75. The investor is risk adverse, with utility equal to the square root of the payoff. (4 marks) Assume the following information system is provided. Also assume an investor's net payoff is $42,000 if future performance is high, and $5,000 if future performance is low. Show the investor's expected utility given this new information if good news is observed. Show all calculations, including writing out Bayes' formula in symbol form appropriate for this problem. Round numbers to two decimal places. Future Good News Bad News Performance/Current News High 75 .25 Low .15 .85

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