(b) The footballer with the above utility function can choose to invest in asset or asset . Cumulative probability distribution functions of the 2 assets are as follow:

: () = 2 : () = For the above, 0 1

(i) Determine if asset is first-order stochastic dominant over asset . (6 marks)

(ii) Verify explicitly if asset is second-order stochastic dominant over asset . (6 marks)

ANSWER MUST TYPE