Please help

Suppose you have just inherited $10400 and are considering different options for investing the money to maximize your retum. If you are riskneutral (that isI neither seek out or shy away from risk)I which of the following options should you choose to maximize your expected return? 0 A. Put the money in an interestbearing checking account, which eams 3%. The FDlC insures the account against bank failure. 0 B. Invest the money in a corporate bond, with a stated return of 6%, but there is a chance of 11% the company could go bankrupt. O 0. Loan the money to one of your friends' roommates, Mike, at an agreed upon interest rate of 9%. but you believe there is a 6% chance that Mike will leave town without repaying you. D. Hold the money in cash and eam zero return. Suppose the only possibility is to loan the money to one of your friends' roommates. If you could pay your friend $50 to nd out extra information about Mike that would indicate with certainty whether he will leave town without paying or not, would you pay the $50? 0 A. Yes. it is worth it, but only if Mike stays in town and pays back the loan. 0 B. Yes. it is worth it, because it increases your expected return and reduces the downside risk that the loan will default. 0 C. No, it isn't worth it, because the money paid to your friend increases your costs and it cuts your expected retum. O D. No, it isn't worth it, because it doesn't change your expected return and keeps the downside risk at the same level. What does the previous answer say about the value of better information regarding risk? 0 A. Paying a small amount to get better information regarding risk doesn't bring benets. 0 B. A problem created by asymmetric infonnatjon can't be solved with money. 0 C. Paying a small amount of money is inefcient in cases of moral hazard. O D. Paying a small amount to improve risk assessment can be very benecial