Figure 27-2 The Following Figure Shows a Utility Function for Alex

Multiple Choice

Figure 27-2
The following figure shows a utility function for Alex.
-Refer to Figure 27-2. 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.