Multiple Choice
A risk premium
A) is required to get a risk-neutral person to make a fair bet.
B) is the maximum amount needed to compensate a decision-maker to willingly take a risk.
C) is the maximum amount a decision-maker would pay to avoid taking a risk.
D) is the minimum amount a decision-maker would pay to avoid taking a risk.
Correct Answer:
Verified
Correct Answer:
Verified
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