only part iii is needed

Version:0.9 StartHTML:0000000105 EndHTML:0000003801 StartFragment:0000000141 EndFragment:0000003761 Gabi invests in the 'most amazing' project. She is risk averse, with a utility index v(m) = m,

where m is the money he earns from the project. If the project succeeds, she will earn an income of

m = 100, but if it fails, he gets m = 0. Suppose the probability of the project succeeding is p =

1

2 .

(i) What is Gabi's expect income from the project?

3(ii) What is her expected utility?

(iii) Suppose Gabi could purchase insurance on the market. This insurance contract guarantees

her a fifixed level of income, no matter what happens with the project. What is the smallest

amount of income that Gabi would accept from the insurance company?

Gabi invests in the 'most amazing\" project. She is risk averse, with a utility index 11(m) = x/m, Where m is the money he earns from the project. If the project succeeds, she will earn an income of m = 100, but if it fails, he gets m = 0. Suppose the probability of the project succeeding is p = % (i) What is Gabi's cicpect income from the project? 3 (ii) What is her expected utility? (iii) Suppose Gabi could purchase insurance on the market. This insurance contract guarantees her a xed level of inc0me, no matter what happens with the project. What is the smallest amount of inc0me that Gabi would accept from the insurance company