The gure below shows Sam's utility function (the curved blue line). He is currently broke, but has applied for a scholarship of $1000, which he has a 40% chance of obtaining. 100 50 wealth . i 1 0 170 400 1000 (a) What is Sam's expected utility and expected wealth? (b) Is Sam risk averse, risk neutral or risk loving? Explain. (c) A classmate of Sam's really wants that scholarship and is afraid of competing with Sam for it. He is willing to offer Sam s0me money in exchange for him withdrawing his application. What sum of money is Sam willing to accept for this? What does this imply for his risk premium