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Question 4 [10 Marks] (a) With the help of appropriate diagrams explain the difference the First Order Stochastic Dominance (FOSD) criterion and the Second Order

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Question 4 [10 Marks] (a) With the help of appropriate diagrams explain the difference the First Order Stochastic Dominance (FOSD) criterion and the Second Order Stochastic Dominance (SOSD) criterion. [8] (b) Which criterion would you use if the cumulative distribution functions (CDFs) used when applying the stochastic dominance criteria were intersecting? [2]

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