A Risk Averse Individual Would

question 80

Multiple Choice

A risk averse individual would

• A)prefer $5 with certainty than a risky prospect with the expected of $5.
• B)prefer a risky prospect with an expected value of $5 to a certain amount of $5.
• C)be indifferent between a risky prospect with an expect value of $5 to a certain amount of $5.
• D)prefer $5 with certainty than a risky prospect with the expected of $50.