Consider the quadratic VNM utility function U(w) = a + bw + cw2.

(a) What restrictions if any must be placed on parameters a, b, and c for this function to display risk aversion?

(b) Over what domain of wealth can a quadratic VNM utility function be defined?

(c) Given the gamble

Show that CE < e(g)="" and="" that="" p=""> 0.

(d) Show that this function, satisfying the restrictions in part (a), cannot represent preferences that display