Tim graduated from a university one year ago. After working for a year, he accumulated some savings, and his bank would like to offer him a risky investment. He can invest $10000 and with a probability of 75% he gets $12000 in a year. With probability 25% he loses $2000 on the project (i.e., gets only $8000 back). Alternatively, he can keep the $10000 in his high interest savings account and earn 10% interest with no risk and no fees. a. Will Tim choose the risky investment or keep his money in the savings account if he obeys expected utility maximization and is risk neutral? (2 marks) b. Given that Tim is young and very keen to make his savings grow fast, it makes sense to assume that he is risk loving and his utility function is given as u (.H =.\\'3' His behaviour can be explained by expected utility maximization. Will he invest in the risky project? (2 marks) c. Now assume that Tim applies Prospect Theory in his decision process. Explain how Tim may make his decision and why he may not choose the risky investment option. (2 marks)