Joe has $ 5 0 0 0 He has an opportunity to invest in a new smart phone app being designed by a friend He would invest $ 2 5 0 0 for this project, keeping $ 2 5 0 0 in reserve He has a 5 0 5 0 chance of earnings $ 6 0 0 0 above the initial investment amount or losing the entire amount invested due to a failure to sell Assuming he has a square root utility function, Joe should

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Question: Joe has $ 5 0 0 0 . He has an opportunity to invest in a new smart phone app being designed by a friend.

Joe has $

5000 .

He has an opportunity to invest in a new smart phone app being designed by a friend. He would invest $

2500

for this project, keeping $

2500

in reserve. He has a

\frac{50}{50}

chance of earnings $

6000

above the initial investment amount or losing the entire amount invested due to a failure to sell. Assuming he has a square root utility function, Joe should:

Joe has $5000. He has an opportunity to invest in a

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