Natasha Is Going to Buy a Risky Asset That Has

question 98

Multiple Choice

Natasha is going to buy a risky asset that has an expected value of $62, which yields an expected utility of 146. Her risk premium is $19. What is her certainty equivalent?

• A)$19
• B)$43
• C)$81
• D)$208

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Definitions:

Central Selling Point

A unique feature or benefit of a product or service that is emphasized to attract and convince potential customers.

Immediate, Personal Service

Prompt and individualized assistance tailored to meet specific needs of customers.

Welcoming Claims

Statements or assertions made with the intention of creating a friendly or hospitable environment.

Unethical Individuals

People who act in ways that violate moral principles or standards of conduct, often causing harm or disadvantage to others.