Question: Suppose that Natasha's utility function is given by u ( 1 ) = 1 0 1 2 , where 1 represents annual income in thousands

Suppose that Natasha's utility function is given by u(1)=1012, where 1 represents annual income in thousands of dollars.
Is Natasha risk loving, risk neutral, or risk averse? Explain.
Suppose Natasha takes the new job which offers $44,000(I-44) with a 0.6 probability and $33,000)=(33 with a 0.4 probability. How much would she be willing to pay to avoid the risk of the variable income associated with the new job? (Hint: What is the risk premium?)
Suppose that Natasha's utility function is given

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