{{ block title }} A Game {{ endblock }} {{ block content }} Suppose you are asked to allocate 100 dollars between a “risky option” and a “safe option”. The amount you put in the safe option remains as it is. Your earnings from the risky option depends on chance. A coin will be flipped--if it comes heads, your earnings from the risky option will be zero. If it comes tails, your earnings from the risky option will be 2 times the amount you put in that option. Your total earnings from this decision is the sum of your earnings from the safe option and the risky option.

For example, imagine that you put 50 dollars into the risky option and 50 dollars into the safe option. The safe option will yield you 50 dollars for sure. The return on the 50 dollars invested in the risky option will depend on the flip of a coin. That is, with 50% probability this will give you 50*2=100 dollars while with the same probability it will return 0 dollars. As a result, depending on the coin flip, your total return will be either 150 dollars (100 dollars from the risky option plus 50 dollars from the safe option) or 50 dollars (0 dollar from the risky option and 50 dollars from the safe option).

If you have 100 dollars, how much of the 100 dollars would you like to invest in the risky option (0-100)? {{ formfields }}
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