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Bob Invests $50 in an Investment That Has a 50

Question 1

Multiple Choice

Bob invests $50 in an investment that has a 50% chance of being worth $100 and a 50% chance of being worth $0. From this information we can conclude that Bob is NOT


A) risk preferring.
B) risk neutral.
C) risk averse.
D) rational.

Correct Answer:

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