Q$14$ Assume you are a risk averse investor and have $2,000$ to invest. If you buy shares

in Ryanair, you face the following returns and probabilities from holding the stock for

one year: with a probability of $0\mathrm{.}1$ you will get $1,600$; with a probability of $0\mathrm{.}4$ you will

get $2,000$; with a probability of $0\mathrm{.}4$ you will get $2,200$; and with a probability of $0\mathrm{.}1$

you will get $2,600.$ If$,$ instead of buying shares in Ryanair, you put your money into a

savings account, in one year$$s time you will have $2,100$ with certainty.

What is the expected value of investing in Ryanair and, assuming you are a risk averse

investor, will you invest in Ryanair shares?

$($a$)2,100,$ don$$t invest;

$($b$)2,150,$ invest;

$($c$)2,100,$ invest;

$($d$)2,150,$ don$$t invest;