Consider the following investment options. 1) A bond with an equal probability of the rate of return of 5% or 15%. 2)A bond with an equal probability of the rate of return of 8% or 12%. 3) A bond with an equal probability of the rate of return of 10% or 15%. Which of the following statements is CORRECT?

A.

A risk-loving investor would choose option 3 over option 1.

B.

A risk-neutral investor would choose option 2 over option 3.

C.

A risk-averse investor would choose option 1 over option 2.