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the question is in te image below, thanks. Carla, David, and Eva are offered to participate in the following lottery at a price of p

the question is in te image below, thanks.

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Carla, David, and Eva are offered to participate in the following lottery at a price of p = .821. With equal probability the lottery pays out either 10, or 30. Carla, David and Eva currently have a wealth of 25 each. Carla's utility over outcomesfwealth is given by 110(2) = J3. while David's utility is given by 1:\"(3) = 2% and Eva's utility is given by uE(z} = g; + %. (a) Write down the lottery over wealth for each individual. What is the expected value of the lottery? (b) What are Carla's, David's and Eva's risk attitudes [are they risk averse, risk neutral, or risk loving)? Explain your answer. (6) Determine the certainty equivalent of the lottery for each player and explain with the help of the certainty equivalent who will choose to participate in the lottery and who will not. (I) What is the highest possible price that Eva is willing to pay to participate in the lottery? e) What is the highest possible prlce that Carla is willing to pay to participate in the lottery

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