Answer questions 27-30

27. If the coefficient of absolute risk aversion for an agent is 2 and the risk premium required by the investor to participate is 16, what is the variance of the investment opportunity? a. 2 b. 8 c. 16 d.4 28. EUT defines agent risk preferences within a theoretical framework that allows a comparison of and a. risk premiums, objective probabilities b. subjective probabilities, certainty equivalence c. utility, expected utility d. expected risk, expected value