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An Individual Whose Utility Function Is Given by

Question 1

Multiple Choice

An individual whose utility function is given by An individual whose utility function is given by ​(where W<sub>i</sub> is wealth in state i) will: A) never gamble no matter how favorable the odds. B) only gamble if the expected value of the bet is positive. C) gamble if the bet is not too unfair. D) always gamble,no matter how unfavorable the odds.
​(where Wi is wealth in state i) will:


A) never gamble no matter how favorable the odds.
B) only gamble if the expected value of the bet is positive.
C) gamble if the bet is not too unfair.
D) always gamble,no matter how unfavorable the odds.

Correct Answer:

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