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For questions 8-10 assume that Rosa has a 10% chance of getting sick in the next year. If she gets sick, her medical bills will

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For questions 8-10 assume that Rosa has a 10% chance of getting sick in the next year. If she gets sick, her medical bills will amount to $3600. She has a wealth of $10,000. Suppose she has the utility function (2) = VI, where x is her net wealth at the end of the year. What is Rosa's risk premium? (a) 0 (b) 16 (C) 36 (d) 56 (e) None of the above What is the most that Rosa is willing to pay for an insurance policy that fully covers against her loss? (a) 0 (b) 196 (c) 396 (d) 596 (e) None of the above

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