In a world with uncertainty a Jack has Bernoulli utility function u(w), where w is final wealth, and their preferences over lotteries is represented by the Expected Utility form. They are offered a choice between (A) getting $25 for sure or (B) getting $60 with probability 0.5 and $0 with probability 0.5. 1) Given they are risk averse, will Jack definitely choose A, definitely choose B, or is it uncertain what he will choose? Explain 2) Given they are risk loving, answer the same question as above. Explain 3) If Jack chose A for a low level of initial wealth but B for a higher level of initial wealth, what would we know about their coefficient of absolute risk aversion