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A Person Is Risk Averse If

Question 37

Multiple Choice

A person is risk averse if:


A) his indifference curve is tangent to the constant expected consumption line at a point on the guaranteed consumption line.
B) he views variability as a bad thing.
C) for a given level of expected consumption, he prefers the riskless bundle to a risky one.
D) All of these answer choices are correct.

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