3. For a game with a 50/50 chance of either $100 or -$100, a person (1) Who prefers playing the game over getting $10 with certainty is risk loving, risk averse, or loss averse? Why? 4. For a game with a 50/50 chance of either losing $100 or losing $200, a person who decides to play the game in lieu of paying $150 is loss averse, risk loving, or risk averse? 5. Suppose a person's utility function is concave with respect to wealth and can be summarized as Utility = In (wealth). If a person's wealth at the end of the year will either be $1 mil if the stock market goes up, or $100,000 if the stock market's return is zero, with each scenario equally likely, a) What is the person's utility from the expected value of the outcomes? b) What is the person's expected utility of the outcomes? Is (b) higher or lower than (a) and why? c) Calculate the certainty equivalent income. d) Calculate the risk premium