7. a. (5 points) Suppose an asset pays $110 dollars for certain a year from now and $121 dollars for certain two years from now. Suppose also that the risk 'ee interest rate is 10 percent. What is the total present value of payments of this asset? b. (5 points) Now consider another asset whose expected payoff was $110 dollars one year from now and $121 two years from now, but there was substantial uncertainty about what the actual payoff will be. Suppose people are risk averse. Compare the price of this asset to the price of the asset in part (a) (is it greater than, less than, or equal). Explain why. Compare the expected return of this asset to the expected return of the asset in part (a)