For Constants a and B,0 < B,b $\neq$ 1,and Expected Profit E

question 9

Multiple Choice

For constants a and b,0 < b,b $\neq$ 1,and expected profit E( $\pi$ ) ,the expected utility function of a person who is risk-neutral can be written as E(U) = :

• A) a + bE(\(\pi\)).
• B) a - bE(\(\pi\)).
• C) a + b^\(\pi\).
• D) a + [E(\(\pi\))]^b.
• E) a + [E(\(\pi\))] ^-b.

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