1) Assuming a Risk-Neutral decision maker, and starting with a deal that has a 0.9 probability of losing $1 Million and a 0.1 probability of a zero pay-off, find the value of X in the following deals that makes you indifferent to this deal. a) A Deal with 0.8 Probability of X and 0.2 Probability of Zero b) A Deal with 0.7 Probability of X and 0.3 Probability of Zero c) A Deal with 0.6 Probability of X and 0.4 Probability of Zero d) A Deal with 0.5 Probability of X and 0.5 Probability of Zero e) A Deal with 0.4 Probability of X and 0.6 Probability of Zero f) A Deal with 0.3 Probability of X and 0.7 Probability of Zero g) A Deal with 0.2 Probability of X and 0.8 Probability of Zero h) A Deal with 0.1 Probability of X and 0.9 Probability of Zero Plot the (Probability of X) vs. X. 2) Repeat for a decision maker with a Risk Aversion Coefficient of 10^ -6.

3) Heat Maps: Probabilig vs Severigy Plots 1) Assuming a Risk-Neutral decision maker, and starting with a deal that has a 0.9 probability of losing $1 Million and a 0.1 probability of a zero pay-o', nd the value of X in the following deals that makes you indifferent to this deal. a) A Deal with 0.8 Probability of X and 0.2 Probability of Zero b) A Deal with 0.7 Probability of X and 0.3 Probability of Zero G) A Deal with 0.6 Probability of X and 0.4 Probability of Zero d) A Deal with 0.5 Probability of X and 0.5 Probability of Zero e) A Deal with 0.4 Probability of X and 0.6 Probability of Zero 1) A Deal with 0.3 Probability of X and 0.7 Probability of Zero g) A Deal with 0.2 Probability of X and 0.8 Probability of Zero h) A Deal with 0.1 Probability of X and 0.9 Probability of Zero Plot the (Probability of X) vs. X. 2) Repeat for a decision maker with a Risk Aversion Coe'lcient of 10A -6