Socrates owns just one ship. the ship is worth $200 million dollars. if the ship sinks, socrates loses $200 million. the probability that it will sink is .02. socrates’ total wealth including the value of the ship is $225 million. he is an expected utility maximizer with von neuman-morgenstern utility u(w) equal to the square root of w. what is the maximum amount that socrates would be willing to pay in order to be fully insured against the risk of losing his ship?

answer; only identify and interpret trends in the marketplace;

answerangel investor;

two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.