Question 1:

Please use excel to draw an image that is exactly as same as the one below and paste what you drew on excel here on the word. (please attach the excel worksheet in which you worked on so I can go back to refer to it if I need to). Draw expected level of risk from (0.8, 0.9…1.3, 1.4) The line on the graph means utility level.

After you draw the exact image with excel from above, please also use excel to draw an image not only when risk is h= +_0.2 but also when it is h=+_0.4 and h=+_0.6 of expected utility. When you are pasting the image here, please type below which image stands for which level you drew so I will not get confused. Type it here with word after you paste the image you drew.

Question 2:

Use the expected utility level of graph you drew Question 1 and draw an indifference curve when expected utility is 0.9, 1.0 and 1.1 respectively. (use solver and trendline) Paste the graph you made using excel here.
An example for what you graph should look like is below. (Also please attach the original excel worksheet so I can go back to check if I need to)

Question 3:

Please calculate risk premium and certainty equivalent of assets when return at probability 50% is 0.08 and when probability 50% is -0.04. Use utility function U(r)= (1+r)^0.5
Please show step by step equation and calculation.

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