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An investor has the option of choosing between two investment options: 1) A risk-free asset...

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Accounting

An investor has the option of choosing between two investment options: 1) A risk-free asset with a 3% rate of return. 2) A share investment that yields either -5% (probability is 30% ) or + 10% (probability is 70 %). The investor is indifferent between 1) and 2). Is the investor risk-loving, risk-averse, or risk-neutral?

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