(a) Suppose that Eiseb utility function is U M and his initial wealth is 360. Will he accept a gamble in which he win 130 with probability 2/3 and lose 110 with probability 1/3? (5) (b) Why is it intuitively plausible to assume that most people are risk averse? (5) (c) Why must a signal between potential adversaries be difficult to fake? (5) (d) How does statistical discrimination affect average insurance premium paid by members of different groups?