Assume there is a new on-line game where participants can bet on the coin toss that takes place at the start of the Rose Bowl. While there is no entry fee, a participant wins $1,000 if he picks the team that wins the pre-game coin toss. The participant loses $1,100 if he picks the team that loses the pre-game toss. Assume a fair coin is used. Which of the following is TRUE? The expected value to a participant playing the game is losing $1,100. Therefore, no participant regardless of whether they are risk averse, risk neutral or risk seeking will play the game. The risk premium to the sponsors of this game is negative. Since there is a 50% chance of being correct, risk neutral participants would be willing to play the game. The expected value to a participant playing the game is winning $50. Therefore, risk averse players will play the game The expected value to a participant playing the game is losing $50. Therefore, only risk seeking participants will play the game