Question: Please help me to answer the questions that is attached. 0U ESTION 2 (Calculation MUST be done 4 decimal places) A bettor has a choice

Please help me to answer the questions that is attached.

0U ESTION 2 (Calculation MUST be done 4 decimal places) A bettor has a choice between the following four lotteries: (For simplicity it is assumed that cost offottery is negh'gible, equivalent to zero) Lottery # A 28% chances to WIN $11000 59% chances to WIN $3500 13% chances to WIN $2300 Lottery # B 68% chances to WIN $12000 32% chances to LOSE $3225 Lottery # C 28% chances to WIN $7000 41% chances to WIN $13000 15% chances to WIN nothing 16% chances to LOSE $2200 a. If the bettor has $3250, having utility function U(x) = 1.76(ln(x)), where X is total wealth which lottery he should choose among A, B or C? b. If the bettor has $10,500, having utility function U(x) = 2.71 1.12e'x1157m, where X is total wealth which lottery he should choose among A, B or C? c. If bettor is not risk neutral and having utility function U(x) = 2.71 9415700 what will be your recommendation, Lottery A, B, C or D. Calculate Risk premium for lottery A, B, and C independently? Which lottery will give low certainty value to bettor? d. If bettor is risk neutral, what will be your recommendation, lottery A, B or C? Why

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