Assume that Janet is risk-averse. Which of the following bets is she more likely to accept, depending on the degree of risk aversion?
A. win $20 one-fourth of the times, win $10 one-fourth of the times, and lose $20 one-fourth of the times
B. win $20 one-fourth of the times, win $10 one-half of the times, and lose $20 one-fourth of the times
C. win $40 one-fourth of the times, break even one-half of the times, and lose $40 one-fourth of the times
D. win $40 one-fourth of the times, win $10 one-half of the times, and lose $40 one-fourth of the times
Answer: B
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