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Question : Suppose you considering investing in a pharmaceutical company that developing

Suppose you are considering investing in a pharmaceutical company that is developing a new treatment for an incurable disease. If it is successful, the company’s stock price will increase from $30/share to $40/share. If the new treatment fails, the stock price will remain at $30/share. The probability of success is .10; the probability of failure is .90. A __________________ person would buy the stock at $30 per share.

A. risk neutral

2. risk inclined

3. risk averse

4. risk loving

please explain

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