Multiple Choice
Kedran is indifferent between option A, which gives her $10,000 for sure, and option B, which gives her $5,000 with probability 0.4 or $15,000 with probability 0.6. Kedran's cost of risk for option B is
A) zero.
B) $1,000.
C) $5,000.
D) $10,000.
Correct Answer:
Verified
Correct Answer:
Verified
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