Liz baylor has a $100,000 ring and keeps $100,000 cash in a checking account that pays no interest. if the ring is stolen, liz will be forced to replace it at a cost of $100,000. the chance of this happening is 1/100. she can, however, get insurance that would completely reimburse to her the $100,000 if her ring was stolen. what is the largest premium she would be willing to pay if her u-function is : (i) u = y1/4 (ii) u = y4 (iii) u = y? where y denotes the amount of cash she has. (note that her utility function does not include the value of the ring, since she always has the ring.)