The PFS decision analysis team elicits the probability of FDA approval from Kelton. However, due to the recent fallout from a class-action lawsuit, the value of PFS stock has sunk by 30%. As such, the...

The PFS decision analysis team elicits the probability of FDA approval from Kelton. However, due to the recent fallout from a class-action lawsuit, the value of PFS stock has sunk by 30%. As such, the DA team will consider the same decision as shown before but thinks it wise to reassess Kelton's riskaversion coefficient, y. Before doing so, they construct the following graphic.

Consider the following statements about Kelton's decision problem:

I. If he is risk seeking, he should choose to market.

II. There is a degree of risk-aversion where his best alternative would be to sell the rights to Smartiva.

III. His assessed probability of the FDA approval for Smartiva is greater than 0.70.

How many of the above statements are true?

a. none c. 2

b. 1 d. 3