Question: Hi there, I've received a problem set back from my professor & I also got these 2 questions wrong. She hasn't given me feedback so

Hi there, I've received a problem set back from my professor & I also got these 2 questions wrong. She hasn't given me feedback so could I have some help on how to answer them.

Hi there, I've received a problem set back from my professor &

6) An individual's preferences over wealth are represented by the Bernoullian utility function u(@) = w', where w > 0 denotes wealth. The individual's current wealth is $400 and they are facing a risk of losing all their wealth with a probability of 1/4. What is the risk premium (p) of this risk for the individual for a fair, full-coverage insurance? a) p = 646.1. b) p = 6346.1. c) p= -646.1. d) The question cannot be answered without knowing the fair full-coverage insurance fee for this risk. 7) If the Pratt measure of absolute risk aversion is positive for an individual, which one of the following Bernoullian utility functions over wealth is possible for this individual? a) u(w) = 01/2. b) v(w) = Inw. c) w(w) = -w-1. d) All the Bernoullian utility functions above are possible

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