(Answered) Finance: Utility function- expected utility- certainty equivalent for prospect

An individual has the following utility function: u(w)=w^5 where w=wealth.;a. Using expected utility, order the following prospects in terms of preference, from the most to the least preferred;P1(.8, 1000, 600);P2(.7, 1200, 600);P3(.5, 2000,300);b. What is the certainty equivalent for prospect P2?;c. Without doing any calculations, would the certainty equivalent for prospect P1 be larger or smaller? Why?
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Finance: Utility function- expected utility- certainty equivalent for prospect

 


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