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The Following Questions Use the Information Below

Question 42

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The following questions use the information below.
A decision maker is faced with two alternatives. The decision maker has determined that she is indifferent between the two alternatives when p = 0.45.
  The following questions use the information below. A decision maker is faced with two alternatives. The decision maker has determined that she is indifferent between the two alternatives when p = 0.45.    -Refer to Exhibit 14.7. What is the decision maker's risk premium for this problem? A) -$20,000 B) -$25,900 C) $70,000 D) $80,000
-Refer to Exhibit 14.7. What is the decision maker's risk premium for this problem?


A) -$20,000
B) -$25,900
C) $70,000
D) $80,000

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