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You and your friend Mandeep have two investment opportunities. The first offers a potential return of $ 5 , 0 0 0 and a potential
You and your friend Mandeep have two investment opportunities. The first offers a potential return of $ and a potential loss of $ each with a chance of occurring. The second offers a potential return of $ and a potential loss of $ each with a chance of occurring. You decide to invest in the second opportunity, but Mandeep passes on both. This suggests that:
There is no investment that would interest Mandeep.
Mandeep is more risk averse than you are.
Mandeep will never accept a bet with a chance of losing.
Mandeep is more rsk neutral than you are.
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