There Are Three Projects to Consider

Multiple Choice

There are three projects to consider. Project A and B both have an expected return of $1,000,000. Project C has an expected return of $800,000. Which of the following statements best describes a risk-neutral investor?

A) An investor who would choose to do Project A because it is closer to home, even though it has a lower risk.
B) An investor who would choose to do Project B because it is closer to home, even though it has a lower risk.
C) An investor who would choose to do Project B because it is closer to home, even though it has a higher risk.
D) An investor who would choose to do Project C because it is closer to home, even though it has a lower risk.
E) An investor who would choose to do Project C because it is closer to home, even though it has a higher risk.