An individual (operating in perfect capital markets) with a zero initial wealth, and the utility function U (Y) = 111/2 is confronted with the gamble (16, 4; 1/2). a. What is his certainty equivalent for this gamble? b. If there was an insurance policy that, together with the original gamble, would guarantee him the expected payoff of the gamble, what is the maximum premium he would be willing to pay for it