Uncertainty and risks 1. Show if the following utility functions represent risk averse, risk neutral or risk loving preferences. i. u(c) = 105 + 3 ii. u(c) = C2 + 30 iii. u(c) = etc iv. u(c) = 1 - e-c 2. A woman with current wealth X has the opportunity to bet an amount on the occurrence of an event that she knows will occur with probability P. If she wagers W, she will received 2W, if the event occur and o if it does not. Assume that the Bernoulli utility function takes the form u(x) = -e"* with r > 0. How much should she wager? Does her utility function exhibit CARA, DARA, IARA