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    Could someone confirm/point me in the right direction with my answers to the below question please? Thanks a lot.

    Winston has total wealth of GBP10,000 and utility function u(x) = SQRT(x). He has
    a choice between two investment opportunities, investment project A and investment project B. With probability 50% an investment project performs well and earns him a return of 44%, otherwise it goes badly and he loses 19% of his investment.
    (a) Calculate Winston?s expected utility if he invests his entire wealth in project A.
    (b) Calculate Winston?s expected utility if he invests his entire wealth in project B.
    (c) Suppose that Winston knows that project A performs badly if and only if project B performs badly. Calculate his expected utility if he invests half his wealth in project A, the other half in project B.
    (d) Suppose that Winston knows that project A performs badly if and only if project B performs well. Calculate his expected utility if he invests half his wealth in project A, the other half in project B.


    (a) (0.5 x SQRT(1.44 x 10000)) - (0.5 x SQRT(0.19 x 10000)) = 38.21
    (b) Same as (a).
    (c) If B performs well then A must perform well. But if B performs badly then must A also perform badly?
    (d) If B performs badly then A must perform well. But if B performs well then must A perform badly?

    Thanks again for any help
 
 
 
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