Mary’s utility function is U(W) = W0.33, where W is wealth. Is she risk averse? Mary has an initial wealth of $27,000. How much of a risk premium would she require to participate in a gamble that has a 50% probability of raising her wealth to $29,791 and a 50% probability of lowering her wealth to $24,389? (Hint: See Solved Problem 16.3 and the discussion of the risk premium in Figure 16.2.) M