Consider the Following Scenario When Answering the Following Questions

question 30

Multiple Choice

Consider the following scenario when answering the following questions:
Ivett and Desiree are considering playing a game called Twenties versus Fifties.In this game,Ivett will place a $20 bill on the table,and Desiree will place a $50 bill on the table.Both players will then toss a fair coin.If both Ivett and Desiree toss heads or if they both toss tails,Ivett wins the $70 on the table.If one woman tosses heads and the other tosses tails,Desiree wins the $70 on the table.
-For Ivett to be willing to play this game,Ivett would need to be ________.For Desiree to be willing to play this game,Desiree would need to be ________.

• A) risk averse; risk averse
• B) risk averse; risk neutral
• C) risk neutral; a risk taker
• D) a risk taker; risk neutral
• E) a risk taker; risk averse

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Definitions:

Appropriation

The process of setting aside funds for a specific use or purpose by a company, organization, or government.

Corporation's Affairs

The various activities, decisions, and policies related to the management and operation of a corporation.

Stockholders' Equity

The remaining interest in a company's assets after all liabilities have been subtracted, symbolizing ownership stake.

Bylaws

Regulations, rules, or laws adopted by an association or corporation to govern its actions and affairs.