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George Is Considering Buying Shares of Intel

Question 156

Multiple Choice

George is considering buying shares of Intel. If the company does well, he will gain $100, but if the company does poorly, he will lose $100. George is risk averse, so for George the magnitude of the pain of losing $100 will ________ the pleasure of gaining $100.


A) equal
B) be less than
C) be greater than
D) None of the above answers are correct because we cannot compare the pain of losing to the pleasure of gaining.

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