IV. (Adverse selection) 30% There are two dates, 1 and 2. There are N entrepreneurs. (You can think that N is a large number.) Each entrepreneur has one project which needs one unit of goods at date 1 as investment. Half entrepreneurs hold risk project and half hold safe projects. Only the entrepreneur himself knows the type of his project. If the project gets the one-unit funding at date 1, then it will yield some output at date 2. Specifically, at date 2, a funded safe project produces 3 units of goods; a funded risk project produces 0 with probability 1 - 7 and 3/* with probability