Prufrock Is Risk Averse

question 19

Multiple Choice

Prufrock is risk averse. He is offered a gamble in which with probability he will lose $1,000 and with probability , he will win $500.

• A) Since he is risk averse, he will certainly not take the gamble.
• B) Since the expected value of the gamble is positive, he will certainly take the gamble.
• C) If Prufrock's initial wealth is greater than $1,500, he will certainly take the gamble.
• D) If Prufrock's initial wealth is smaller than $1,500, he will certainly not take the gamble.
• E) Not enough information is given to determine for sure whether he will take the gamble.

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Definitions:

Carpel

The female reproductive unit of a flower; carpels bear ovules. Compare with pistil.

Female Reproductive

Pertaining to the system in females involved in producing eggs, supporting embryo/fetus development, and giving birth.

Petals

The colorful parts of a flower that surround the reproductive structures.

Corolla

Collectively, the petals of a flower.