A Risk-Neutral Individual Will

question 181

Multiple Choice

A risk-neutral individual will

• A) accept only better-than-fair gambles.
• B) accept fair gambles but reject better-than-fair ones.
• C) accept any gamble with an expected value of zero or more.
• D) accept only gambles with an expected value of one or more.
• E) see risk as neither good nor bad.

---

Definitions:

Positively Disposed

Having a favorable attitude or inclination towards something or someone.

Critical Thinking

The act of deliberately and adeptly forming, using, examining, combining, and assessing data to derive a solution or conclusion.

Truth-seeking

The pursuit of understanding and knowledge by questioning, evidence evaluation, and skepticism.

Probing Questions

Deep or insightful inquiries designed to elicit more detailed or revealing responses.