A Risk-Averse Individual Would

Multiple Choice

A risk-averse individual would:

A) prefer $5 with certainty to a risky prospect with the expected value of $5.
B) prefer a risky prospect with an expected value of $5 to a certain amount of $5.
C) be indifferent between a risky prospect with an expect value of $5 and a certain amount of $5.
D) prefer $5 with certainty to a risky prospect with the expected value of $50.