If X Is a Monetary Value (A Payoff If Positive

question 13

Multiple Choice

If x is a monetary value (a payoff if positive, a cost if negative) , U(x) the utility of this value, and R > 0 is the risk tolerance, then the function U(x) = 1 - is called a(n) :

• A) Poisson utility
• B) exponential utility
• C) binomial utility
• D) normal utility

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