3- (Total ofpt_s) a. {5:13;} Ludo has a landscaping company and uses a John Deere to mow the grass. Ludo is a risk-averse individual and he is also a fairly bad driver. His landscaping company makes $50,000 for the summer. However, based on his past experience, Ludo has a 30% chance of being involved in an accident with his John Deere which would result in a $4,000 fee for reparation. Assume Ludo's utility function, as a function of his income, is U\"): Vl- - 5000. Ludo is considering buying a full insurance. What is the highest premium he is willing to pay for the full insurance? b. (Total of am} Myriam is considering investing in two different portfolio. 0 Portfolio 1 pays $300 with a 20% probability and $200 with an 30% probability. 0 Portfolio 2 pays $500 with a 5% probability, $400 with a 20% probability, and $100 with a 25% probability i. @p_ts} Calculate the expected payoff of each portfolio. ii. mpg} Assume Myrigm has the following utility function U(x]=', calculate the expected utility of each portfolio and discuss which portfolio she would prefer