Question 3My friend, Ahmad, is trying to determine which of two opportunities he should invest in (only one of them). His options are Bitcoin and S&P 500.If he invests in Bitcoin, he believes that he has a 10% chance of making 15% profit, a 25% chance of only 8% profit, 15% of losing 10% of his investment capital(-10%), and a 50% chance of no change in his investment capital (0%).IH Ahmad invests in S6PS00, he has a 70% chance for the 8% profit, a 25% chance for no change (0%), 3% chance for losing -10%, and 2% for a 15% profit.Ahmad is indifferent between the following lotteries.15%o andalso indifferent between15%andIf Ahmad wants to invest in what maximizes his expected return on investment, which investment is the best? Please note: x-0.79 and y-0.06. In the box below putthe expected utility for the investment he should pick. Write your answer with three decimals.

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Answered: Question 3 My friend, Ahmad, is trying…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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