Suppose Chris is offered the following gamble: with probability 0.1 he will win $90, with probability 0.4 he will win $50, and with probability 0.5 he will lose $60. Chris will:. The second gamble offers a 20 percent chance of winning $100 and an 80% chance of losing $20. Which choice has the higher expected value?
A. accept this gamble if he is risk-averse, but not if he is risk-neutral.
B. accept this gamble if he is risk neutral, but not if he is risk-averse.
C. accept this gamble if he is either risk neutral or risk-averse.
D. not accept this gamble if he is risk-neutral.
