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-Assume the Information in the Table Regarding the Probability and

question 2

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 Investment  A  B  State description  Bad state  Good state  Bad state  Good state  Probability 0.250.750.250.75 Payoff 200220400435\begin{array}{|l|l|l|l|l|}\hline \text { Investment } & \text { A } && \text { B } \\\hline \text { State description } & \text { Bad state } & \text { Good state } & \text { Bad state } & \text { Good state } \\\hline \text { Probability } & 0.25 & 0.75 & 0.25 & 0.75 \\\hline \text { Payoff } & 200 & 220 & 400 & 435 \\\hline\end{array}
-Assume the information in the table regarding the probability and payoffs of assets A and B relates to an investor who has a log utility function.What is the expected utility of asset B?

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