Simba is a street vendor downtown Nairobi who sells roasted maize during the month of May.

Simba is a street vendor downtown Nairobi who sells roasted maize during the month of May. Simba has $0 wealth and he makes $10 (~1000 Kshs) when it rains, but he makes $38 (~3850 Kshs) if it does not rain. Simba's utility function is given by U(C)=C2, and the probability of rain is 50%.

Which of the following describes Simba's risk preferences?

Simba is risk averse

Simba is risk neutral

Simba is risk loving

None of the above