Problem 1 (40 points). Suppose Lucky, Dusty and Ned are identical in all respects, except utility. Lucky has U = W1.5, Dusty has U = 1 + 2W, and Ned has U = In W. Lucky, Dusty and Ned each have initial wealth of $140 and have a 25 percent probability of losing $100. A. Calculate the certainty equivalents of wealth (WCE) for Lucky, Dusty and Ned. B. Who is willing to pay the most to insure this risk? Explain why.