Erik is an investor with $5,000 available for investment. He has the following three investment possibilities from which to choose: Suppose Erik cares about the risk involved in Options 2 and 3, and decides to select Option 1 because it has no risk. Which of the following statements would be true about Erik? He is risk-averse. He is risk-neutral. He is risk-loving. None of these descriptions is accurate. Suppose the market risk premium is currently 6%. If investors were to become more risk-averse, the market risk premium might increase to 89%. What effect would you expect this to have on the prices of most financial assets? Prices would increase. Prices would decrease. Prices would be unaffected