Erik is an investor with $5,000 available for investment. he has the following three investment possibilities from which to choose: option | scenarios1. | keep the $5,000 in cash for one year.2. | invest in a friend’s business with a 50% chance of getting $10,000 after one year and a 50% chance of getting nothing.3. | invest in a relative’s business with a 30% chance of getting $15,000 after one year, 20% chance of getting $2,500 after one year, 50% chance of getting nothing. suppose erik cares about the risk involved in options 2 and 3, and decides to select option 1 because it has no risk. which of the following statements would be true about erik? a. he is risk-averse. b. he is risk-neutral. c. he is risk-loving. d. none of these descriptions is accurate. later, while examining the same investment alternatives, erik’s brother, devin, clearly expressed a preference for option which of the following statements is true about devin? a. he is risk-averse. b. he is risk-neutral. c. he is risk-loving. d. none of the above.