Bob Invests $25 in an Investment That Has a 50

question 69

Multiple Choice

Bob invests $25 in an investment that has a 50% chance of being worth $100 and a 50% chance of being worth $0. From this information we can conclude that Bob is

• A)risk preferring.
• B)risk neutral.
• C)risk averse.
• D)Any of the above.

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Definitions:

Government

The organized system through which a community, city, state, or nation is ruled, including the administration of policies, laws, and public services.

Commercial Speech

Forms of speech or messaging done on behalf of a company or individual for the intent of making a profit, and is subject to regulation and protection under various legal doctrines.

First Amendment

An amendment to the U.S. Constitution that safeguards freedoms including speech, religion, assembly, and the press from governmental restrictions.

Misleading

Information or statements that give a false idea or impression, leading others to believe something that is not true.