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For Constants a and B,0 < B,b \neq 1,and Expected Profit E

Question 32

Multiple Choice

For constants a and b,0 < b,b \neq 1,and expected profit E( π\pi ) ,the utility function of a person who is risk-neutral can be written as U = :


A) a + bE( π\pi ) .
B) a - bE( π\pi ) .
C) a + b π\pi .
D) a + [E(b π\pi ) ].
E) a + [E( π\pi ) ] -b.

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