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We also know that Alavaro and Estela view risk differently, and that is why they have different utility functions (listed below). Alvaro: U(C) = 2C

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We also know that Alavaro and Estela view risk differently, and that is why they have different utility functions (listed below). Alvaro: U(C) = 2C Estela: U(C) = VC (b) Using those utility functions, compute the certainty equivalent (CE), the risk premium (RP) and expected utility (EU) associated with each of the three activities for each individual. Report your answers in Table 2 below. Report precise final results, which means that you should use all decimals of your intermediate results to get your final answer. Round your final answers to TWO decimal places. Table 2 Individual Activity EU CE RP Alvaro 1: Full time farming Alvaro 2: Full time construction work Alvaro 3: Part time farming Estela 1: Full time farming Estela 2: Full time construction work Estela 3: Part time farming

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