Joe is a risk-averse decision maker. Which one of the following lotteries will he prefer? To analytically secure your answer, you should show that the expected utility in the preferred choice is higher. You may consider the utility of the highest reward as 1 and that of the lowest as 0.

L1: with probability of 0.1 Joe loses $100, otherwise wins $0.
L2: with probability of 0.1 Joe loses $190, otherwise wins $10.

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