1. Suppose the utility function for John is U(I) = I ^0.5,
   1. Is John risk-loving? Risk-averse or Risk neutral? Explain.
   2. John is a farmer who is wondering if he would build a fence to protect his harvest. His harvest will generate $10,000 in income if there are no wild animal attacks. He will lose 75% of his income if there are wild animal attacks. The probability of a wild animal attack is 0.1. (find the expected payoff with no fence)
   3. A contractor approached John telling him that he can build him a fence to protect his crops. Calculate the maximum amount John is willing to spend to build a fence. (Assume the fence is completely effective and no damages will occur even if there are animal attacks)