4. Tom satisfies the expected utility hypothesis and has a vNM utility function for wealth w is u(w) = Vw. Consider a lottery which pays a $w1 > 0 in state 1 and $w2 > 0 in state 2. There only two states, accruing with probabilities p and 1 - p respectively. The certainty equivalent is given by the formula a. pwi + (1-p) Vw2 b. p2 wit (1 -p)2 w2 c. Part (a) but only if w1 = W2 d. (pywit (1 -p) Vw2)2