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.

Option	Payoff One Year from Now
1	100% chance of receiving $1,100
2	50% chance of receiving $1,000
	50% chance of receiving $1,200
3	50% chance of receiving $200
	50% chance of receiving $2,000

If Erik is a risk neutral investor, which investment will he prefer?

Erik will be indifferent toward these options.

Erik will choose option 1.

Erik will choose option 2.

Erik will choose option 3.

In contrast, Eriks brother, Devin, is risk averse. Which of the following statements is true about Devin?

Everything else remaining constant, Devin will prefer option 1.

Everything else remaining constant, Devin will prefer option 2.

Everything else remaining constant, Devin will prefer option 3.

None of these options is preferred.