1. Suppose you are facing an investment opportunity with a random return X Also, you know that X has the following characteristics: (100,(p=0.3) X 40.(p=0.7) Your preference is represented by a utility function such that u(x) = { and you are an expected utility maximizer. Now answer the following questions What is the expected return of the investment fopportunity? b What is the certainty equivalence of the investment opportunity? What is the risk premium of the investment opportunity? a