An Agent Is Said to Be Risk Averse Only If

question 34

Multiple Choice

An agent is said to be risk averse only if he assesses:

• A) an outcome's certainty equivalent to be greater than its expected value.
• B) the expected value of an outcome to be negative.
• C) an outcome's expected value to be equal to its certainty equivalent.
• D) an outcome's certainty equivalent to be less than its expected value.
• E) an outcome's certainty equivalent to be negative

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Definitions:

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An 18th-century French naturalist, mathematician, and author known for his significant contributions to the natural sciences, especially in the field of natural history.

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