A Risk-Loving Individual Would

question 68

Multiple Choice

A risk-loving individual would:

• A) prefer $5 with certainty to a risky prospect with the expected value of $5.
• B) prefer a risky prospect with an expected value of $5 to a certain amount of $5.
• C) be indifferent between a risky prospect with an expect value of $5 and a certain amount of $5.
• D) prefer a risky prospect with the expected value of $0.50 to $5 with certainty.