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4. Risk aversion Erik is an investor witn $3, vuu avallable for investment. He has the following three investment possibilities from which to choose: Suppose
4. Risk aversion Erik is an investor witn $3, vuu avallable for investment. He has the following three investment possibilities from which to choose: Suppose Erik cares about the risk involved in options 2 and 3, and decides to select option 1 because it has no risk. Which of the following statements would be true about Erik? He is risk-averse. He is risk-neutral. He is risk-loving. None of these descriptions is accurate. Later, while examining the same investment alternatives, Erik's brother, Devin, clearly expressed a preference for option 1. Which of the following statements is true about Devin? He is risk-averse. He is risk-neutral. He is risk-loving. None of the above
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