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QUESTION 12 Pierre satisfies rank-dependent utility with u(x)=x 2 and w(p)=(p)1/2. Calculate the rank-dependent utility of prospect q=(5/9 : 3 ; 2/9 : 9 ;

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QUESTION 12 Pierre satisfies rank-dependent utility with u(x)=x 2 and w(p)=(p)1/2. Calculate the rank-dependent utility of prospect q=(5/9 : 3 ; 2/9 : 9 ; 2/9 : 6). QUESTION 13 Pierre satisfies rank-dependent utility with u(x)=x 2 and w(p)=(p)1/2. Calculate the certainty equivalent of prospect q=(5/9 : 3 ; 2/9 : 9 ; 2/9 : 6). QUESTION 14 According to the previous calculations, Pierre is risk averse. risk prone. risk neutral. none of the above

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