Suppose that Wang's utility function is given by U(y)=y2，where y represents daily income

1. Is Wang risk averse,risk netural or risk loving? explain

2. Suppose that is currenttly earning RMB 100 per day with certainty.She is offered a chance to take a new job as a sales representative.The income of the new job depends on sales and has a 0.5 probability of earning RMB 160 and a probability 0.5 of earning 50.Should she take the new job?

3.How much would Wang be willing to pay for insurance to protect against the variable income associated with the new job?Would any insurance firm offer her an insurance contract at a premium equal to her willingness to pay?