a. 6 There are five possible outcomes: x1 = 5,000; x2 = 4,000; x3 = 2,000 x4 = 1,000; xs = 0. Consider the following lottery over these outcomes: L1=(-1, 2, 2, 3,2). Find another lottery L2 with the same expected value as Li such that a risk-averse person would strictly prefer L2. Explain your answer. b. Find another lottery L3 with the same expected value as Li such that a risk-loving person would strictly prefer Ls. Explain your answer. Repeat part (a) and now impose the requirement that the new lottery puts strictly positive probability on all five outcomes. Calculate the variance of L, and of your new lottery and use these variances in the explanation of your answer. d. Repeat part (b) and now impose the requirement that the new lottery puts strictly positive probability on all five outcomes. Calculate the variance of Li and of your new lottery and use these variances in the explanation of your answer. c. a. 6 There are five possible outcomes: x1 = 5,000; x2 = 4,000; x3 = 2,000 x4 = 1,000; xs = 0. Consider the following lottery over these outcomes: L1=(-1, 2, 2, 3,2). Find another lottery L2 with the same expected value as Li such that a risk-averse person would strictly prefer L2. Explain your answer. b. Find another lottery L3 with the same expected value as Li such that a risk-loving person would strictly prefer Ls. Explain your answer. Repeat part (a) and now impose the requirement that the new lottery puts strictly positive probability on all five outcomes. Calculate the variance of L, and of your new lottery and use these variances in the explanation of your answer. d. Repeat part (b) and now impose the requirement that the new lottery puts strictly positive probability on all five outcomes. Calculate the variance of Li and of your new lottery and use these variances in the explanation of your answer. c