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Which of the following investments would a risk-averse investor prefer if the risk-free rate is 22 Current Investment Price Price in one year if the

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Which of the following investments would a risk-averse investor prefer if the risk-free rate is 22 Current Investment Price Price in one year if the Price in one year if the market market goes up with a probability goes down with a probability = 40% 60% 1 10 2 5 20 5 20 15 Investments 1 and 3 b. Investment 1 only Investments 1 and 2 Od Investment 2 only Investment 3 only

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