(a) (6 marks) There are two types of investment opportunities. Investment of type A will give a profit of $1200 with probability 0.5 and a profit of $2000 with probability with probability 0.5. Investment of type B has a profit of $700 with probability 0.5 and profit of $2600 with probability 0.5. Use cumulative prospect theory with the value function v(x)=x0.8 and decision weights in the table below to determine which investment will be selected. (b) (10 marks) Suppose there are four possible investments in total: two investments of type A available, and two of type B. There are funds available to make just two investments. The returns from different investments of the same or different type are independent. Use cumulative prospect theory with the value function v(x)=x0.8 and decision weights in the table below to determine the prospect values for the three different options: two investments of type A, two investments of type B, or one investment of each (a) (6 marks) There are two types of investment opportunities. Investment of type A will give a profit of $1200 with probability 0.5 and a profit of $2000 with probability with probability 0.5. Investment of type B has a profit of $700 with probability 0.5 and profit of $2600 with probability 0.5. Use cumulative prospect theory with the value function v(x)=x0.8 and decision weights in the table below to determine which investment will be selected. (b) (10 marks) Suppose there are four possible investments in total: two investments of type A available, and two of type B. There are funds available to make just two investments. The returns from different investments of the same or different type are independent. Use cumulative prospect theory with the value function v(x)=x0.8 and decision weights in the table below to determine the prospect values for the three different options: two investments of type A, two investments of type B, or one investment of each