Refer to Figure G

question 27

Multiple Choice

Refer to Figure g.Lily's benefit function (dashed) is more concave than Millie's (dotted) in Figure g.Millie:

• A) is more risk averse than Lily.
• B) is less risk averse than Lily.
• C) has a larger risk premium than Lily.
• D) has a lower certainty equivalent than Lily.