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The owner of a private language school has a profit of $50,000 for the year. She has the option of saving the $50,000 for future opportunities or investing all of this amount in a new classroom facility. The investment has a 50% probability of gaining $20,000 and a 50% probability of losing $35,000. ($15,000 left) If she has a square root utility function, what should the school do
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The owner of a private language school has a profit of $50,000 for the year. She has the option of s...
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