Given That Tamar Is a Risk-Averse Person,she Might Accept a Bet

question 55

Multiple Choice

Given that Tamar is a risk-averse person,she might accept a bet with a 50 percent chance of losing $100 today if she had a 50 percent

• A)chance of winning $120 in two years and the interest rate was 11%.
• B)chance of winning $114 in two years and the interest rate was 7%.
• C)chance of winning $110 in two years and the interest rate was 3%.
• D)None of the above are correct;a risk averse person would not accept any of the above bets.

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