#5 (30 marks) This question consists of 2 independent sub-questions 1. (14 marks) Consider a risky project x that has the following payoff and probability distribution table: a. Payoff Probability $1 0.2 $4 0.5 Compute the expected value, EV, of project x. (2 marks) $16 0.3 b. Suppose an investor, Mr. John Nash, has a utility function given by the function g(x) = 2x Compute CE, the certainty equivalence, of x for our investor. (4 marks) Is Mr. Nash risk-neutral, risk-averse, or risk-loving? Explain (2 marks) C. Suppose another investor, Mrs. Donna Nash, has a utility function given by the function g(x) = 0.25.x2 Compute CE, the certainty equivalence, of x for our investor. (4 marks) Is Mrs. Nash risk-neutral, risk-averse, or risk-loving? Explain (2 marks)