When determining the value of a firm, which of the following statements is true?

Investors are risk neutral. Other things being equal, they prefer to pay more for stocks that are less risky and have uncertain cash flows.

Investors are risk averse. Other things being equal, they prefer to pay more for stocks that are less risky and that have relatively more certain cash flows than other stocks.

Investors love risk. Other things being equal, they prefer to pay more for stocks that are riskier and have uncertain