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 ind ifferent toward these options: In contrast to his brother Enk, Devin is a nsk lover (or exhibits risk seeking behavion). Which of the following statements is true about Devin? Everything else remaining constant, Devin will prefer ootion 3. 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 wilt be indifferent toward these options. In contrast to his brother Enk, Devin is a risk lover (or exhibits risk seeking behavior). Which of the following statements is true about Devin? Everything else remaining constant, Devin will prefer option 3. Everything else rernaining constant, Devin will prefer option 2 . Everything else remaining constant, Devin will prefer option 1. None of these options is preferred. 2. The beta coefficient A stock's contribution to the market risk of a well-diversified portfolio is called risk. It can be measured by a metric called the beta coefficient, which calculates the degree to which a stock moves with the movements in the market. Based on your understanding of the beta coefficient, indicate whether each statement in the following table is true or faise