A Risk-Neutral Individual Would

Multiple Choice

A risk-neutral individual would:

A) prefer $5 with certainty to a risky prospect with the expected value of $5.
B) prefer a risky prospect with an expected value of $5 to a certain amount of $5.
C) be indifferent between a risky prospect with an expect value of $5 to a certain amount of $5.
D) prefer a risky prospect with the expected value of $0.50 to $5 with certainty.