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Risky Prospect Y is defined as: Y (S0, 0.35; S16, 0.50: $81,0.15). Marcos utility of wealth function is given by u(x)-Vx (in case the font is too small, that says fourth root of x). 1. What is the value of EV(Y)? 2. What is the value of SD(Y (the standard deviation of prospect Y (Round to the nearest hundredth) 3. What is the value of EU(Y) for Marco? 4. What is Marcos certainty equivalent for Y (what is the value of CE(Y))? Hint: ifx)V, then f-1(x)-x*).
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С$0/Q.ss; 4.lb,a ço ; tgl ,0.is) 4(8lxo.is) 20-1S $20.15 (O.SXS *

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