I Exercise We now make two changes to the pnncipaI-agent model discussed above: (i) The production function is: Y= e + Ts, where Tis capital (as a proxy variable for rm size), and s is a normally distributed random variable of zero mean and standard deviation 0'. (ii) The manager's expected utility is: E(U(W C)) = E(W C) pVaW C) (a) With other conditions unchanged, solve the model in the same way as above and show that: B: 1 1 + 12,196sz (b) Explain the effect of rm size on the pay-performance sensitivity