A Person Who Strongly Wishes to Avoid Risk Would Pick

question 48

Multiple Choice

A person who strongly wishes to avoid risk would pick which of the following choices?

• A) a 50% chance of winning $750 or a 50% chance of winning $0
• B) a 100% of getting $375
• C) a 50% chance of getting $750, 25% chance of getting &1,500 and a 25% chance of losing $1,500
• D) All of the above are equal to a person who wishes to avoid risk.

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Definitions:

U.S. Dollar Value

The worth of a good, service, or financial security denominated in terms of the United States dollar.

Norwegian Kroners

The official currency of Norway, symbolized as NOK.

U.S. Dollars

The official currency of the United States, which is used as a standard monetary unit for various international transactions.

Foreign Trade Zone

A designated location within a country where goods can be imported, stored, and processed without being subject to import duties until they enter the domestic market.