3. Suppose we are in a world with two equally likely states u and d. And we have three stocks A, B and C. Their net returns are given by the following table. 1 u Stock B d 10% 20% 20% 10% 15% 14% Table 1: The net returns of the stocks. Can you find a risk-averse investor who prefers stock A (or B) to stock C? Explain