Every $1 Invested in Safe Sox Will Yield $2 for Sure.Each

question 12

Multiple Choice

Every $1 invested in Safe Sox will yield $2 for sure.Each $1 invested in Wobbly Umbrellas will yield $8 with probability 1/2 and $0 with probability 1/2.An investor has $10,000 to invest in these two companies and her von Neumann-Morgenstern utility function is the expected value of the natural logarithm of the total yield on her investments.If S is the amount of money that she invests in Safe Sox and $10,000 2 S is the amount that she invests in Wobbly Umbrellas, what should S be to maximize her expected utility? (Pick the closest answer.)

• A)$1,111
• B)$3,333
• C)$5,000
• D)$6,667
• E)$9,111

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Definitions:

Mast Cell

A type of white blood cell found in connective tissue, playing a key role in allergic reactions and inflammation by releasing histamine and other chemicals.

Connective Tissue

A type of body tissue that supports, connects, or separates different types of tissues and organs in the body.

Basophil

A type of white blood cell involved in inflammatory responses and allergic reactions.

Hematocrit Value

The ratio of the volume of red blood cells to the total volume of blood, a key measure in blood tests to assess health.