The answers are not 0, 1, sqrt(2), 4/3, 1.59, or 0.45. Require the answers for the red spaces only. Green is correct.

(1 pt) An investor is asked to consider a possible risky investment as follows: The payoff X is the amount 0 with probability , and the amount 4 with probability The investor is then asked: what risk-free (certain) payoff C is equivalent to the risky payoff X? She answers: a nsk-free payoff of C = 2 is equivalent to X Find the values of the parameters c, a, in the form 3 such that the three conditions U(0) = 0, U(2) = EU(X)] and U(4) = 4 are satisfied. 4/3 Would you characterize this investor as risk-averse of risk-loving? This investor is risk- loving type the appropriate word in lower case)