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The Following Statements About Excepted Utility Theory Are All Equivalent 0,xCE>00, x_{C E}>0

Question 12

Multiple Choice

The following statements about excepted utility theory are all equivalent except:


A) For all gambles an individual's certainty equivalent is always greater than 0,xCE>00, x_{C E}>0
B) If x>xx^{\prime}>x^{\prime \prime} then the slope of u(x) u(x) is greater at u(x) u\left(x^{\prime \prime}\right) then at u(x) u\left(x^{\prime}\right) .
C) The individual is risk averse.
D) The individual is risk-neutral.

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