Question: Amanda is considering whether to put $ 1 , 0 0 0 in her savings account at an annual interest rate of 1 2 percent

Amanda is considering whether to put $1,000 in her savings account at an annual interest rate of 12 percent or purchase $1,000 worth of stock in BigCorp. If she puts $1,000 in her saving account, then at the end of the year, shell have $1,120 for certain. If she buys stock in BigCorp, then at the end of the year, theres a 20 percent chance shell have $1420, a 40 percent chance shell have $1110, and a 40 percent chance shell have $845.
If Amanda is risk averse, then she will
multiple choice
purchase $1000 worth of stock in BigCorp.
put $1000 in her savings account.
split up the money between the two options

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