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-The Above Figure Shows the Utility of Wealth Curve for a Homeowner

Question 181

Multiple Choice

-The above figure shows the utility of wealth curve for a homeowner whose only possession is a $50,000 house. If there is a 20 percent chance that the home could be entirely destroyed, what is the person's cost of risk? A) $10,000 B) $20,000 C) $30,000 D) $40,000
-The above figure shows the utility of wealth curve for a homeowner whose only possession is a $50,000 house. If there is a 20 percent chance that the home could be entirely destroyed, what is the person's cost of risk?


A) $10,000
B) $20,000
C) $30,000
D) $40,000

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