Consider a consumer with each of the following utility functions: i ) u( x ) = -ex ii) u (x) = In(x) iii) u(x ) =x/ 2a. For each of the utility functions above, compute the coefficient of absolute risk aversion and the coefficient of relative risk aversion. The consumer faces one of two possible risks: La: with probability /2, no loss occurs, and with probability /2, a loss of $10 occurs. Lb: with probability /2, no loss occurs, and with probability /2, a loss of 10% of wealth occurs. 2b. Compute the maximum a consumer with utility function (i) above will pay for full insurance against risk La when initial wealth is w = 100 and when initial wealth is w 200.2c. 2d. 2e. Compute the maximum a consumer with utility function (ii) above will pay for full insurance against risk Lb when initial wealth is w = 100 and when initial wealth is w = 200. Compute the maximum a consumer with utility function (iii) above will pay for full insurance against risk La when initial wealth is w = 100 and when initial wealth is w = 200. Part b of this question illustrates constant absolute risk aversion. Part c illustrates constant relative risk aversion. Part d illustrates decreasing absolute risk aversion. Very briey explain how