An Increase in Todd's Wealth from $2 Million to $4

question 51

Multiple Choice

An increase in Todd's wealth from $2 million to $4 million raises his utility from 400 units to 500 units. If he has a utility of wealth curve with the typical shape showing risk aversion, then with a wealth of $6 million his utility might be

• A) 500 units.
• B) 570 units.
• C) 600 units.
• D) 620 units.

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