Khalid has a utility function U = W1/2, where W is his wealth in millions of dollars and U is the utility he obtains from the wealth. In a game show, the host offers him a choice between (A) $4 million for sure, or (B) a gamble that pays $1 million with probability 0.6 and $9 million with probability 0.4. i. Graph Khalid’s utility function with the help of above utility function. Is he risk lover? Explain.  ii. Does A or B choice offer Khalid a higher expected prize? Explain your reasoning with appropriate calculations.  iii. Does A or B offer Khalid a higher expected utility? Again, show your calculations.  iv. Should Jamal pick A or B choice? Why?

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