A tourist traveling with $10,000 in cash. At the hotel, he is informed that he has a one in two chance of being robbed during the night. The hotel has a safe, which costs $ 4000. Hence the tourist is facing the following gamble = ($10,000, 0$; 0.5, 0.5) or ending up with a net worth of $6000 with certainty. Assume that the tourists utility function is U(W) = W1/4 What is the risk preference of the tourist?

Cant be determined

Risk averse

Risk neutral

Risk loving