How do individuals perceive the interest rate risk that they encounter? For example, suppose that individuals could make a choice between always earning their expected rate of return or facing interest rate risk. Which option would they prefer? Use detailed graphical analysis with economic interpretation to support your answer. Suppose that an individual faces uncertainty regarding the return to a financial asset. The individual invests $1, 000 in the financial asset. With a probability equal to p = 1/3, the return is a relatively low rate equal to R1 = 1.1. On the other hand, the individual receives a high rate of return equal to R2 = 1.3 with probability (1 - p) = 2/3. Write down an expression for an individual's expected income. Then, write down an expression for an individual's expected utility