The origin of a graph is the intersection of the two axes, where the value of both variables is zero

Jeff holds $50,000 wealth which has a utility of 7.07 utils (assuming utility is the square root of wealth in thousand dollars). He considers investing this in a gamble which has a 0.6 probability of increasing his total wealth to $100,000 and 0.4 probability of decreasing it to $30,000 . What will be Jeff's expected utility from the gamble?

a. 15 utils b. 8.19 utils c. 3.2 utils d. 12.12 utils

If at current exchange rates it was cheaper to buy a product in country A than country B, the purchasing power parity theory would increase the relative exchange value of country A's currency

a. True b. False Indicate whether the statement is true or false