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Portia has been waiting a long time for her ship to come in and has concluded that there is a 10% chance that it will arrive today. If it does come in today, she will receive $62,500. If it does not come in today, her wealth will be $2,500. Portia has a von Neumann-Morgenstern utility such that she wants to maximize the expected value of ve where c is total wealth. Q1.1 1 Point She is offered $5,000 for the rights to her ship. Will Portia accept the offer? Yes No Q1.2 1 Point What is the minimum price at which she will sell the rights to her ship? (Please enter your answer without $, commas, periods) Enter your answer here Portia has been waiting a long time for her ship to come in and has concluded that there is a 10% chance that it will arrive today. If it does come in today, she will receive $62,500. If it does not come in today, her wealth will be $2,500. Portia has a von Neumann-Morgenstern utility such that she wants to maximize the expected value of ve where c is total wealth. Q1.1 1 Point She is offered $5,000 for the rights to her ship. Will Portia accept the offer? Yes No Q1.2 1 Point What is the minimum price at which she will sell the rights to her ship? (Please enter your answer without $, commas, periods) Enter your answer here
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