1 point 10. The difference between the expected value of the gamble and the certainty equivalent is termed the risk premium: True False cannot be determined 1 point 4. In the utility function U = E(R) - .05A Variance, the risk-averse investor has a "A" value so that the second term reduces the level of utility as the variance increases negative poistive zero O none of the above 9. A typical lottery offers outsize rewards at very very low probability levels, making 1 point the expected return quite low compared to the risk free alternative so the risk premium for lottery is: Positive O Negative O positive or negative O cannot be determined