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Frank Willis Has the Right to Enter a Contest Where

Question 27

Multiple Choice

Frank Willis has the right to enter a contest where he has a 50% chance of winning $50,000 and a 50% chance of losing $0.It costs Frank nothing to enter the contest.If he is willing to give up his right to enter the contest for a sure payment of $10,000, he is ___.


A) a risk avoider
B) an optimist
C) a risk taker
D) risk neutral (an EMV'er)
E) a gambler

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