If a Person Is Risk Averse

question 64

Multiple Choice

If a person is risk averse:

• A)the certainty equivalent of a gamble is equal to the expected value of the gamble.
• B)the certainty equivalent of a gamble is lower than the expected value of the gamble.
• C)the certainty equivalent of a gamble is higher than the expected value of the gamble.
• D)cannot be compared to the expected value of the gamble.

---

Definitions:

Software

Software refers to a collection of data or computer instructions that tell the computer how to work. This is in contrast to physical hardware, from which the system is built and actually performs the work.

Instructions

Directions or commands that are given to a computer or program to perform specific operations or tasks.

Hardware

The physical components or parts of a computer system, such as the CPU, RAM, hard drives, and peripherals.

Data Management

The practice of collecting, keeping, and using data securely, efficiently, and cost-effectively through a set of disciplines and techniques.