Question 3: Consider the following three choice situations: Choice {i}: ($2SIK},1,'2 ; $, [f2 ] vs. ( $13M], '1 ) Choice (ii): ll: $6000, [[4 ; $[{['[}[J,3;"4 ) vs. [ $23{}U,l ] Choice {iii}: [$600,1[4 ; $400, [/4 ; $200, [/4 ; $0, [f4 ] vs. {$400, [/2 ; $200.1/2) (3) Suppose Josh is a riskaverse expected utility,r maximizer. For each choice, can we determine which option Josh will choose, or do we need more information? ([1) For each choice, as Josh becomes more risk averse, does he become more prone to choose the rst or second option? (c) Now suppose Josh has a CRRA utility,r function. For each choice, as Josh's wealth becomes larger, does he become more prone to choose the rst or second option? (Note: You should be able to intuit an answer to part (c) no math is needed.)