Strategy a Has an Expected Value of 10 and a Standard

Multiple Choice

Strategy A has an expected value of 10 and a standard deviation of 3. Strategy B has an expected value of 10 and a standard deviation of 5. Strategy C has an expected value of 15 and a standard deviation of 10. Which one of the following statements is true?

A) A risk-averse decision maker will always prefer A to B, but may prefer C to A.
B) A risk-neutral decision maker will always prefer C to A or B.
C) A risk-seeking decision maker will always prefer C to A or B.
D) All of the above are correct.