Consider the following two investment opportunities for a venture capital firm: Opportunity Y has a success probability of 10%. If it is successful, it will be worth $10M; otherwise it is worth $0. Opportunity Z has a success probability of 50%. If it is successful, it will be worth $2M; otherwise it is worth $0. (The expected payoff to each of the two opportunities is the same$1M). The Limited Partners investment is $0.8 M (the General Partner does not put in any money). The contract calls for the GP to make 20% in carried interest with no fee. Assume risk neutrality and no discounting: a. Which opportunity would the GP prefer? Why?