Suppose you have an opportunity to invest 1,000 in a business venture which will gross 1,100 or 1,200 with equal probability next year. Alternatively you could deposit the 1,000 in a bank which will give you a riskless return. How large does the interest rate have to be for you to be indifferent between the business venture and the deposit account? (Namely, what is your certainty equivalent? Are you a risk lover?)