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

Suppose my utillty function for asset position is
Suppose my utillty function for asset position is given by u(x)=In x. I now have $20000 and am considering the following two lotteries: L1: With probability 1. I lose $6000. L2: 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 tilky.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 tillty of L2-9.072, L2 is preferred. O c. 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. LI is preferred. O e. Expected utility of L1=9.834, Expected Utility of L2-9.852. L2 is preferred. O f. Expected utility of L1=9.852. Expected uhlity of L2=9.834, Ll is preferred

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