Question 21 Assume there is a new on-line game where participants can bet on the coin toss that takes place at the start of the Super Bowl. There is no entry fee A participant wins $500 it he/she picks the team that wins the pre-game coin toss. The participant loves $5 10 it he/she picks the team that loses the pre-game toss. Assume a fair coin is used. Which of the following is TRUE? The expected value to participant playing the game is losing 55. Therefore, no participants regardless of whether they are risk overse, risk neutral or risk seeking will play the game. The expected value to a participant playing the game is losing $2.50. Therefore, only risk seeking participants will play the game. The spoon of the game can expect to earn $5 per participart. The risk premium to the sponsors of this game is negative Since there is a so chance of being correct, risk neutral participants would be willing to play the game