1. Consider the following two investments. The table below shows the three possible payoffs and the probability associated with each pay-off. Probability Payoff Investment A Investment B $100 0.25 0.1 $200 0.25 0.4 $300 0.25 0.4 $400 0.25 0.1 (a) (10 points) Find the expected return and standard deviation of each investment. Which invest-ment is more risky? (b) (10 points) Adam has the utility function U = 0.5w, where w denotes the payoff from invest- ments. Is Adam risk neutral, risk averse, or risk loving? Which investment will he choose? (c) (10 points) Adele has the utility function U = log(1 + w), where w denotes the payoff from investments. Is Adele risk neutral, risk averse, or risk loving? Which investment will she choose? (d) (10 points) Abigail has the utility function U = w, where w denotes the payoff from invest- ments. Is Abigail risk neutral, risk averse, or risk loving? Which investment will she choose?