Question: Suppose my utility function for asset position x is given by u(x)=lnx I now have $20000 and am considering the following two lotteries: L1: With

Suppose my utility function for asset position x is given by u(x)=lnx I now have $20000 and am considering the following two lotteries: L1: With probability 1. I lose $6000. 12: With probability 0.6, I gain $0, and with probability 0.4. I lose $10000. What is expected utility of L1 and L22 Determine which lottery I prefer based on expected utility criterion (25 pls.) Select one: o a. Expected utility of L1=9.072, Expected utility of L2=8.987. L1 is preferred. O b. Expected utility of L1=8.987. Expected utility of L2-9.072. L2 is preferred Oo. Expected utility of L1=9.547. Expected utility of L2=9.626. L2 is preferred. O d. Expected utility of L1=9.626, Expected utility of L2=9.547 Liis preferred o e. Expected utility of L1=9.834, Expected Utility of L2=9.852. L2 is preferred. Ot. Expected utility of L1=9.852. Expected utility of L2=9.834 L1 is preferred

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