Question

Suppose X has income of Rs.500. He wants to maximise his expected benefit Z1/2 where Z is his money earned. He has two options, 1. Do not invest 2. Investment full amount in company A with payoff of 1500 with 50% probability and Rs.0 with 50% probability. What is the maximum expected benefit out of the two options?

A 19.36
B 22.36
C 38.73
D 44.72
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