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3. There are two bets: 0 Option 1: Winning 1000 With probability .5 and losing 1000 With proba- bility .5 0 Option 2: Winning 1000

3. There are two bets: 0 Option 1: Winning 1000 With probability .5 and losing 1000 With proba- bility .5 0 Option 2: Winning 1000 With probability .25, losing 1000 With probability .25 and obtaining nothing With probability .5. (a) Which bet Will a risk-averse person prefer? (b) Which bet Will a risk-neutral person prefer? (c) Which bet Will a riskseeking person prefer

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