How did they get this expression (bottom one) from the risk premium (top one). Please show step-by-step. Thanks.

Get it- with an explan e. Answers in as fast as 15 minutes. (c) (4 pts) What is Alex's risk premium? How does it change as z changes? Solution: The risk premium is 2 + 25000 - (2 # 30000)= (2 + 20000) Taking the derivative of this expression yields z + 25000 V(2 + 20000) (2 + 30000) which is negative. Hence, as Zion's income increases, Alex is will ing to pay less to insure