Bad Luck Good Luck Normal Effort 100 300 High Effort 300 500 a. Amy would necessarily prefer a fixed wage of 80 to a 40% profit share. b. If Amy's risk premium for a 40% profit sharing contract is 25 she would prefer a fixed wage of 80. c. If Amy's risk premium for 50% profit sharing contract is 25 she would prefer a fixed wage of 80. d. Paul would not offer a profit-sharing contract in this case. e. b. and d