題組內容

II. Fill in the blank Questions (5 points each, 30 points in total)
　 Please provide the most accurate numerical value or explanation for each blank. For Questions (blanks) 1-4, include relevant units (e.g., $, %, units) and round to the nearest integer with no decimal points. Write only your final answer—calculation details will not be read or graded. For Questions (blanks) 5-6, provide a clear and concise written explanation using correct economic terminology. Your response must stay within the sentence limit specified; answers exceeding the limit will receive zero credit.

3. An investor, Joan, has a utility function U = W⁰·⁵, where W represents her total wealth. She is considering a risky investment where there is a 20% probability that her wealth will be $400 and an 80% probability that her wealth will be $100. To avoid the uncertainty of the investment and receive her expected wealth with certainty, the maximum risk premium Joan would be willing to pay is ____(3)____.