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1 Risk Aversion, Risk Preference, Risk Neutrality (A) Identify each of the following cardinal utility functions with risk- averse, risk-preferring, or risk-neutral behavior: (i) v

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1 Risk Aversion, Risk Preference, Risk Neutrality (A) Identify each of the following "cardinal" utility functions with risk- averse, risk-preferring, or risk-neutral behavior: (i) v = Inc (ii) v= ac-bez (a, b positive constants) (iii) v= cz (iv) v = ci (v) v = 100 + 6c (vi)=1-e (B) The quadratic form (ii) above has an unsatisfactory feature for c > a/2b. Explain

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