3 Fernanda and Tigstu have the following total utility from differentlevels of income. Assume each currently has $20,000.IncomeTU (Fernanda)TU (Tigstu)$10,000$15,000$20,000$25,000$30,00030304544605775699080Fernanda is risk-Tigstu is risk-If offered actuarially unfair insurance, Fernandabuy it;Tigstu(might / will / will not) buy it.If Fernanda faces a loss of $10,000 with 25% probability (Loss A) or aloss of $5,000 with 50% probability (Loss B) :Risk premium (Loss A)Risk premi um (Loss B).( >, <, = )If you were an investment broker for Fernanda and Tigstu, what wouldyou advise them to do about the following two investments:A) DeVries Oil Exploration: 20% chance of 50% return; 80% chance of 08return.B) Dolma Bond Fund: 60% chance of 6% return; 40% chance of 12% return.a) Tell both of them to buy Devries.b) Tell both of them to buy Dolma Bond.Tell Tigstu to buy Devries; tell Fernanda to buy Dolma.d) Tell Tigstu to buy Dolma; tell Fernanda to buy Devries.c)

Since you have asked two questions and as per our protocol we provide solution to the one question…

an investment broker for Fernanda and Tigstu, what would If you were you advise them to do about the following two investments: A) DeVries Oil Exploration: 20% chance of 50% return; 80% chance of 08 return. B) Dolma Bond Fund: 60% chance of 6% return; 40% chance of 12% return. a) Tell both off them t o buy Devries.