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Which of the Following Statements Is Are True

Question 24

Multiple Choice

Which of the following statements is are true?


A) A risk-preferring individual always prefers the riskier of two gambles that involve different expected value.
B) A risk neutral individual is indifferent between receiving with certainty the expected value of a gamble and the uncertainty of the gamble itself.
C) A risk neutral individual has a utility function which is linear in wealth.
D) Both a and b.
E) Both b and c.

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