5. Consider Alex's car insurance from Question 2, except the insurance company offers to reimburse fraction 6 E [0, 1] of the damage. (a) (5 pts) How much caution will he choose to exercise (as a function of 6)? What is the expected damage? Identify any comer solutions, since 6 cannot be negative. (b) (5 pts) What is the actuarially fair premium? (0) (5 pts) What is Alex's expected utility, given the caution he chooses and the premium he pays? ((1) (5 pts) What amount of coinsurance 6 would maximize Alex's expected utility? Give some intuition for this result. How would you expect it to change if Alex were risk averse