Question: Sarah has a utility function expressed as the square root of wealth Sarah has an initial wealth of $2000 and faces a potential loss of

Sarah has a utility function expressed as the square root of

Sarah has a utility function expressed as the square root of wealth Sarah has an initial wealth of $2000 and faces a potential loss of $1500 with a loss probability of, 15 . What is Sarah's expected utility if an insurer charges her a pure (actuarially fair) premium? 63.75 41.37 42.13 225

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