Calculate expected utility of wealth from the game g

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Reference no: EM132810030

Consider an individual with a quadratic utility function (U(W) = 8*W2) and wealth of 10 euros. This individual is playing a complex game G, where with 50% chance her wealth decreases to 4 euros, 40% chance it stays the same at 10 euro, and 10% chance the wealth increases to 30 euros

Problem 1: Calculate expected utility of wealth from this game G

Reference no: EM132810030

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