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Consider the Following Gamble: on the Toss of a Fair

Question 36

Multiple Choice

Consider the following gamble: on the toss of a fair coin, you receive $10 million if a head appears and nothing if a tail appears. What is Diane Eaton's reservation price for the gamble?


A) $5 million
B) $6 million
C) $100,000
D) cannot be determined from the information provided

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