Multiple Choice
For constants a and b,0 < b,b 1,and expected profit E( ) ,the utility function of a person who is risk-neutral can be written as U = :
A) a + bE( ) .
B) a - bE( ) .
C) a + b .
D) a + [E(b ) ].
E) a + [E( ) ] -b.
Correct Answer:

Verified
Correct Answer:
Verified
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