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Suppose an investor is risk-averse . A potential investment has a 50% chance of earning $200, and a 50% chance of losing $50. Which one

Suppose an investor is risk-averse. A potential investment has a 50% chance of earning $200, and a 50% chance of losing $50. Which one of the following amounts would the investor be willing to pay for this investment?

a. $50

b. $75

c. $125

Why is the answer A.50$ ?

Please show calculation and why. Thank you

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