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A certain investment has a 50% chance of paying $100 and 50% chance of paying - $100. A risk-averse investor would be willing to accept
A certain investment has a 50% chance of paying $100 and 50% chance of paying - $100. A risk-averse investor would be willing to accept this investment as a gift would be willing to buy this investment as long as the price is above $0 would be willing to buy this investment at a price between $1 and $5 would not be willing to buy this investment at any price greater than or equal to $0
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