Consider the two risky assets, A and B, with cumulative probability distribution functions: F(W) = w FB (W) = w In both cases, 0 w1 (i) Show that A is preferred to B on the basis of first-order stochastic dominance. [2 Marks] (ii) Verify explicitly that A also dominates B on the basis of second-order stochastic dominance. [2 Marks] SA-Question 1. Assume you are given a data set D= {(x1,y1),,(xn,Un)} with x, Rd, and y E {-1,1). In class, we discussed how to optimize the hinge loss using stochastic gradient descent, where Chinge (x,y; w) = max{0,1 - ywx}. We will consider here a different loss function & defined as follows: l(x,y; w)= 1 1+ exp{ywTx} 1. Write the update rule of the stochastic gradient descent (with the de- tails of gradient computation, etc) to minimize the following objective: min(x; w). 2. Is the problem convex? (hint: plot the loss function) Find the top 10 bestsellers in computational finance, home and abroad up to date and share with others. Find some other top research journals in computational finance besides what I showed, home and abroad up to date and share with others.