Question: Jen's utility function is u(w) = w ^ 0.5 (or w ^ (1/2) . She is considering two prospects P1(.40,$10,$50) and P2(.04,; $12,000,0) Which one

Jen's utility function is u(w) = w ^ 0.5 (or w ^ (1/2) . She is considering two prospects P1(.40,\$10,\$50) and P2(.04,; \$12,000,0) Which one would she choose if she maximizes expected utility?

A. prospect 1

B. Prospect 2

C. neither

D. Can not be determined!

prospect 2

neither

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