Question: Now use the data from the table but let's say that complete collateral is required. Which project would a risk-averse investor prefer? Project A Project

Now use the data from the table but let's say that complete collateral is required. Which project would a risk-averse investor prefer?

Project A Project B

Startup costs 500 500

High return 600 750

Low return N.A. 0

Probability of a high return 100% .5

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