The above figure shows Bob's utility function. He currently has ...

[Evvie72]

The above figure shows Bob's utility function. He currently has $100 of wealth, but there is a 50% chance that it could all be stolen. Bob's expected wealth is
◦ $0.
◦ $100.
◦ $75.
◦ $50.

[ricroger]

$50.

[roselinechinyere27m]

The above figure shows Bob's utility function. He currently has $100 of wealth, but there is a 50% chance that it could all be stolen. To reduce the chance of theft to zero, Bob is willing to pay
◦ $20.
◦ $50.
◦ $80.
◦ $70.

[sylvia]

$70.

[roselinechinyere27m]

TY

[sylvia]

You're welcome

[piesebel]

The above figure shows Bob's utility function. He currently has $100 of wealth, but there is a 50% chance that it could all be stolen. Over and above the price of fair insurance, what is the risk premium Bob would pay to eliminate the chance of theft?
◦ $50
◦ $0
◦ $20
◦ $30

[sultana.d]

$20

[Capo]

The above figure shows Bob's utility function. He currently has $100 of wealth, but there is a 50% chance that it could all be stolen. Living with this risk gives Bob the same expected utility as if there was no chance of theft and his wealth was
◦ $50.
◦ $30.
◦ $20.
◦ $0.

[cloud]

$30.