The Arrow-Pratt Measure of Risk Aversion Is

question 103

Multiple Choice

The Arrow-Pratt measure of risk aversion is

• A)negative if a person is risk averse.
• B)greater than one if a person is risk averse.
• C)negative if a person is risk loving.
• D)None of the above.

---

Definitions:

Legal Standing

The right of an individual or entity to bring a lawsuit to court based on their stake in the outcome of a controversy needing judicial resolution.

King Philip's War

A conflict between American Indian inhabitants of present-day New England and English colonists and their Indian allies in 1675–1678.

Algonquians

A group of Native American peoples speaking Algonquian languages, originally inhabiting areas of North America from the Atlantic coast to the Great Lakes region.

Metacom

A Native American leader, also known as King Philip, who led a major rebellion against the colonists in New England in the 17th century.