Your utility mction is given by U = W (is. U = W5}, where your 1wealth FF is the sum of the value of your house plus the value of your nancial assets. Answer the followmg questions both numerically and graphically. [To avoid compounding errors, please carry all calculations to the thousandths decimal place.) [1) (5 marks} 'What is your expected loss in wealth? [2) (It) marks) What is the maximum price [$P) for the re insurance you would be willing to pay this price is often called the rd'erencs premium to insure against the loss of your house? Describe your analysis through a graph as well. [3) (5 marks} Why would you be willing to pay a premium higher than your eoqiected loss 1:: actuatially fair premium}