To calculate the expected value $E(W)$ of the individual's assets based on the given probabilities and values, we use the formula:

$E(W) = p_1 \times W_1 + p_2 \times W_2$

where:

• $p_1 = \frac{2}{3}$ and $W_1 = 144$,
• $p_2 = \frac{1}{3}$ and $W_2 = 225$.

Substituting the values:

$E(W) = \left(\frac{2}{3}\right) \times 144 + \left(\frac{1}{3}\right) \times 225$

Calculating each term:

1. $\left(\frac{2}{3}\right) \times 144 = 96$
2. $\left(\frac{1}{3}\right) \times 225 = 75$

Adding these results gives:

$E(W) = 96 + 75 = 171$

So, the expected value $E(W)$ of his assets is N$171.

Would you like further details on this solution or have any questions?

Here are five related questions you might consider:

1. How would the expected utility be calculated using $U(W) = W^{0.5}$?
2. What impact would a change in probabilities have on the expected value?
3. How does risk aversion affect the expected utility in this case?
4. How would the expected value change if the stock values were different?
5. What would happen to the expected utility if the utility function changed to $U(W) = \ln(W)$?

Tip: In decision theory, understanding expected value helps in evaluating the worth of uncertain outcomes, while expected utility accounts for individual preferences for risk.