1. Imagine you are presented with a one-time investment opportunity where the outcome depends on whether a fair coin flip comes up heads or tails. The coin flip is uncorrelated with your existing portfolio of investments and consumption and bequest plans. If it comes up tails, you lose 10% of your wealth. Which of the following amounts of upside would make you feel most ambivalent between accepting or declining the coin flip? If you can’t decide between two options, tick both. In case it helps, the Sharpe Ratios of the different options are 0.05, 0.11, 0.18, 0.26, and 0.34 respectively.

2. Same question as above, but now the downside if the coin comes up tails is you lose 20% of your wealth. Which upside would make you feel most ambivalent? Again, if you are finding two answers close, tick both. The Sharpe Ratios are 0.11, 0.25, 0.44, and 0.80 respectively.

3. Still flipping a fair coin. Now imagine that if it comes up heads, your wealth will increase 5-fold. What’s the most downside you’d accept to take that flip? Again, if your answer is between two options, please tick both.