(Figure: Risk Aversion Differences for Edward and Stephan) Use Figure

(Figure: Risk Aversion Differences for Edward and Stephan) Use Figure: Risk Aversion differences for Edward and Stephan. An important reason that Edward and Stephen may differ in their aversion to risk is:

A) the way their marginal utility is affected by income.
B) their understanding of risk.
C) their initial wealth holding or initial income level.
D) All of these answers are correct.