Carrie's risk premium for Lottery 1 is higher than Lauren's risk premium for Lottery 2. How many of the following statements must be true?

Carrie and Lauren have di erent vNM utility functions.

Carrie must have less starting wealth than Lauren.

Lottery 1 must have a worse \bad outcome" than Lottery 2.

Carrie must be more risk averse than Lauren. Speci cally, for an identical lottery Carrie must bewilling to pay a higher risk premium than Lauren.(

a) 1

(b) 2

(c) 3

(d) 4

(e) None of the above statements are true