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.
Answer: C