An Individual Will Be Considered Risk Neutral If

question 42

Multiple Choice

An individual will be considered risk neutral if:

• A)he is indifferent between taking and not taking up the gamble.
• B)he pays someone to take away the gamble from him.
• C)he pays someone to allow him to take the gamble.
• D)he takes up the gamble under any situation.

---

Definitions:

Stocks And Bonds

Stocks and bonds are financial instruments; stocks represent ownership shares in a company, while bonds are debt securities issued by entities like governments or corporations to raise capital.

Gross Domestic Product

The total market value of all final goods and services produced within a country in a given period, used as a broad measure of economic activity.

Exports

Goods or services produced in one country and sold to buyers in another country, contributing to the exporting country's gross domestic product.

Imports

Goods and services brought into a country from abroad for sale.