In this problem please round your answers to two decimals and enter the correct sign (e.g., -123.98 or +45.76).

Consider an individual with a quadratic utility function (U(W) = 8*W²) and wealth of 10 euros. This individual is playing a complex game G, where with 40% chance her wealth decreases to 4 euros, 20% chance it stays the same at 10 euro, and 40% chance the wealth increases to 30 euros.

a) Calculate expected utility of wealth from this game G. (3 points)

• Enter the number in the cell. Answer

b) Calculate the utility of obtaining the expected value from "safe in hand" outcome. (3 points)

• Enter the number in the cell. Answer

c) Is individual risk averse? (2 points)

• Enter the YES/NO answer in the cell (1 for YES and 0 for NO). Answer

d) Calculate the certainty equivalence of wealth value for W. (5 points)

• Enter the number in the cell. Answer

e) What is the risk premium that this individual requires? (2 points)

• Enter the number in the cell. Answer