Please help with this question for the Behavioural Finance

Consider an individual who will be retiring in two years. His savings are invested in a mutual fund. Every year, the value of his portfolio increases by $0 with probability p and otherwise decreases by $L, where G > L and pG > (1 p) L. The individual's preferences can be represented by Prospect Theory. In particular, his value function for gains and losses is :1: :r>0 '0 (33) = _ 1 A3: a: 1, i.e., he is loss averse. Note that there is no curvature in his value function. Furthermore, his probability weighting function is wp) = p, i.e., he does not overweight probabilities, and his discount factor is 13 = 1, Le, he does not discount future utility. a. Assume rst that every time the individual checks the performance of his portfolio, he experiences utility and his reference point gets reset to the contemporaneous level of wealth. That is, if he checks his portfolio at the end of year 2, then he will experience utility only at year 2, and he will evaluate gains/losses at that time relative to his wealth at year 0. While if he checks his portfolio at the end of year 1 and at the end of year 2, then he will experience utility at year 1, with gains/losses up to that point calculated relative to wealth at year 0, and he will also experience utility at year 2, with gains/ losses between year 1 and year 2 calculated relative to wealth at year 1. Given this assumption, would the individual prefer to check the performance of his portfolio at the end of both years or only at the end of year 2? Show algebraically, and explain the intuition. b. Now assume that the individual's utility is determined only by his total gains/losses over the entire 2-year period, no matter if he checks the balance on his portfolio every year or only at year 2. But if he checks his portfolio at the end of year 1, he can choose to keep his money invested in the fund for another year or to cash out. If the individual checks his portfolio at the end of year 1 and nds that his investments have gone up by G, is it optimal to stay invested in the fund for another year or to cash out? Show algebraically and explain the intuition