Suppose an investor, Erik, is offered the investment opportunities described in the table below. Each investment costs $1,000 today and provides a payoff, also described below, one year from now. If Erik is risk averse, which investment will he prefer? The investor will choose option 1. The investor will choose option 2 . The investor will choose option 3. The investor will be indifferent toward these options. Which kind of stock is most affected by changes in risk aversion? High-beta stocks All stocks are affected the same, regardless of beta. Medium-beta stocks Low-beta stocks