9.Consider the following investment opportunities:

A = pays $22,000 with 50% probability and $0 with 50% probability

B = pays $25,000 with 20% probability and $6,000 with 80% probability

C = pays $15,000 with 60% probability and $3000 with 40% probability

D = pays $10,000 with total certainty.

a.What is the expected return for each investment opportunity?

b.List the investments in order of preference for a risk neutral person.

c.If a risk-averse investor is willing to pay up to $300 to avoid risk (but they are indifferent between different risks), list the investments in their order of preference.

d.If a risk-seeking investor is willing to pay $300 to experience risk (but they are indifferent between different risks), list the investments in their order of preference.

e.Explain why a risk-averse investor would choose to have a portfolio that included a mix of the above investments.