Question 2 Suppose your utility function is U = In (3C) where C is the amount of consumption. Your income is $50,000 and there is a 5% chance that you will be involved in a car accident that will cost $40,000. a) What would be your expected utility without insurance? b) Calculate an actuarially fair premium for an insurance policy that fully covered the loss (in other words, the insurance company gives you $40,000 in the event of a car accident). c) What would your expected utility be if you purchased the insurance product in part (b)? d) What is the most you would be willing to pay for this insurance? e) Calculate the risk premium for this risk