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-Adriana Wants to Try Working as an Independent Contractor This

Question 108

Multiple Choice

-Adriana wants to try working as an independent contractor this summer. She has a 50 percent chance that she will make $9,000 and 50 percent chance that she will make nothing. Her utility of wealth curve is shown in the figure above. What's Adriana's cost of risk? A) $2,500 B) $2,000 C) zero D) $40
-Adriana wants to try working as an independent contractor this summer. She has a 50 percent chance that she will make $9,000 and 50 percent chance that she will make nothing. Her utility of wealth curve is shown in the figure above. What's Adriana's cost of risk?


A) $2,500
B) $2,000
C) zero
D) $40

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