Suppose Option a Has a Lower Expected Value Than Option

question 75

Multiple Choice

Suppose option A has a lower expected value than option B.Which of the following statements is,in general,true?

• A)A risk-averse person prefers option B to option A.
• B)A risk-neutral person is indifferent between options A and B.
• C)A risk-averse person prefers option A to option B.
• D)Insufficient information to determine.

---

Definitions:

Revocation Of Acceptance

A legal action where a buyer rejects goods after initially accepting them, usually due to nonconformity with the contract.

Revocation Of Acceptance

The legal act of rejecting goods or services and cancelling a contract after initially accepting them, typically due to non-conformity or defects.

Perishable Goods

Items that deteriorate over time or have a limited shelf life and require special handling, like food and flowers.

Decline In Value

A decrease in the market worth of an asset or investment over time.