Please assist with risk analysis and management question

a) 1iWhy will people or a business prefer to use hedging a strategyr over the use of insurance as arislt management strategjgr'}l {5 marks] b) 1iWhich of the following statements describes a riskloving individual: explain your answer? Ir Her certainty equivalent is greater than the expected value of the income from the chosen activity, Ir Her certainty equivalent is less than the expected value of the income from the chosen activity: It Her certainty equivalent is equal to the expected value of the income from the chosen activity: [5 marks}