12. (BSZ, review question 2-11) Suppose that an investment can yield three possible cash flows: $5,000, $1,000, and $0. The probability of each outcome is 1/3. a) What is the expected value and standard deviation of the cash flows from the investment? b) How much would a risk-neutral person be willing to pay for the investment (disregard any time-value of money)? c) What can be said about how much a risk-averse person would be willing to pay for the investment (again, disregard any time-value of money)