A Risk-Averse Person

question 254

Multiple Choice

A risk-averse person

• A) has a utility curve where the slope increases with wealth,and might take a bet with a 60 percent chance of wining $100 and a 40 per chance of losing $100.
• B) has a utility curve where the slope increases with wealth,and would never take a bet with a 60 percent chance of wining $100 and a 40 per cent chance of losing $100.
• C) has a utility curve where the slope decreases with wealth,and might take a bet with a 60 percent chance of wining $100 and a 40 per chance of losing $100.
• D) has a utility curve where the slope decreases with wealth,and would never take a bet with a 60 percent chance of wining $100 and a 40 per cent chance of losing $100.