Multiple Choice
If a person is risk averse:
A) the certainty equivalent of a gamble is equal to the expected value of the gamble.
B) the certainty equivalent of a gamble is lower than the expected value of the gamble.
C) the certainty equivalent of a gamble is higher than the expected value of the gamble.
D) cannot be compared to the expected value of the gamble.
Correct Answer:
Verified
Correct Answer:
Verified
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