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Under Expected Utility Theory, Which of the Following Implies Risk Eu(x)<u(E(x))E u(x)<u(E(x))

Question 25

Multiple Choice

Under expected utility theory, which of the following implies risk aversion?


A) Eu(x) <u(E(x) ) E u(x) <u(E(x) ) .
B) xce>E(x) x_{c e}>E(x)
C) u(x) >0u^{\prime \prime}(x) >0
D) The utility function is convex.

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