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