Figure 27-4

question 1

Multiple Choice

Figure 27-4.The figure shows a utility function for Alex.
-Refer to Figure 27-4.From the appearance of Alex's utility function,we know that

• A)if Alex owns a house,then he definitely would buy fire insurance provided the cost of the insurance was reasonable.
• B)Alex would voluntarily exchange a portfolio of stocks with a high average return and a high level of risk for a portfolio with a low average return and a low level of risk.
• C)Alex is risk averse.
• D)Alex is not risk averse.

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Definitions:

Learned Capability

Skills or knowledge acquired through education or experience.

Emotional Intelligence

The ability to comprehend, manage, and articulate one's feelings, as well as to navigate social interactions with wisdom and empathy.

Outstanding Performance

Exceptionally good or remarkable execution of tasks or activities.

Work

Any set of tasks or activities, usually structured and productive, that an individual or group performs, often for compensation or to achieve a goal.