Question 7. For a mean-variance optimizer with A = 1, which of the following is most preferred? Compute the utility of each: A certain return of 2 percent A gamble that gives a return of 5 percent half of the time and 0 percent half of the time A gamble that gives a return of 4 percent half of the time and 1 percent half of the time A gamble that gives a return of 3 percent three-quarters of the time and 1 percent one-quarter of the time Question 8. Consider a risky asset whose payout will either be $0 or $200 with equal probability of 50%. The risk-free rate is 5%. If I told you the risk premium of the asset is 20%, what must be the price