Consider the following three investment options and choose the correct statement.

1) A bond with an equal probability of the rate of return of 5% and 15%.

2) A bond with an equal probability of the rate of return of 8% and 12%.

3) A bond with an equal probability of the rate of return of 10% and 15%.

Select one:

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

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

A risk loving investor would choose option 2 over option 1.