Jenny prefers to invest in a stock relating to a company that contributes to cleaning the environment with an expected return of 7%, against a stock of a company that pollutes the environment and has an expected return of 10%.

1. Is Jenny rational?

2. Is Jenny normal-smart?

3. Is Jenny normal-foolish?

Discuss the 3 parts of this question, ensuring that you make reference to cognitive and emotional errors, wants and trade-offsamong wants.