Risk aversion implies an increasing marginal utility.

1) This chemical is used in lots of industrial processes, including water purification, and to separate DNA molecules in experiments. (Para. 2) 2) Acrylamide is made by something called the Maillard reaction, which browns cooked foods and gives them their pleasing flavor. (Para. 3) 3) The chemical can also be present in breakfast cereals, biscuits and coffee. (Para. 3) 4) Animal studies clearly show that acrylamide causes all sorts of cancers, but it’s hard to relate this to us. (Para. 4) 5) Although evidence from animal studies has shown that acrylamide in food could be linked to cancer, this link isn’t clear and consistent in humans. (Para. 5) 6) At low temperatures, an enzyme breaks down the sugar sucrose into glucose and fructose, which can form acrylamide during cooking. (Para. 11) 7) Processed foods have been altered from their natural state, either for safety reasons or because it makes them easier to store or easier to use. 8) We usually think of processed foods as being bad. In truth, many of them are, but some types of processed foods are beneficial. 9) Not all processes are detrimental. Some ingredients can undergo changes, like being frozen, fermented or sprouted, that makes them equally or more nutritious than they once were. 10) When you do include some processed (not ultra-processed) foods in your grocery cart, consider the following: sprouted foods are nutritious; fermented foods contain probiotics; frozen foods retain more vitamins.

Suppose you just signed a Purchase and Sale Agreement on a new house and you have three choices based on the expectation of the variation of interest rates in the future: (1) Interest rates have been falling, so fixed-rate loans are now very attractive. You could lock in a fixed rate of 7% (annual percentage rate, APR) for 30 years (2) Interest rates are falling, so you are thinking about a 30-year variable-rate loan, which is currently at 4.5% and which is tied to the floating interest rates of Treasury bill (3) A variable-rate loan that begins at 5% and can increase by only as much as 2% per year up to a maximum of 11% If you wanted to hedge all risk of interest rate exposure, you should choose the plan of ( ), if you wanted to transfer risk through insuring, you should choose the plan of ( ).

A、(1); (2)

B、(1); (3)

C、(2); (3)

D、(1); (2) and (3)