Multiple Choice
Suppose we can represent Brandon's preferences for water with an expected utility function U(WR,WD) = (1/4) √WR + (3/4) √WD, where WD represents a quantity of water during a drought and WR represents a quantity of water in a rainy season.Brandon is:
A) risk averse.
B) risk neutral.
C) risk loving.
D) There is not enough information to answer this question.
Correct Answer:
Verified
Correct Answer:
Verified
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