Tim is offered two gambles. With Gamble A, he either gains $2 or loses $1 with a 50 percent probability. With Gamble B, he either gains $3 or loses $2 with a 50 percent probability. Tim prefers Gamble B to Gamble A. What can we conclude? a. Tim is risk loving. b. Tim is risk neutral. c. Tim is risk averse. d. Insufficient information to determine.

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