True/False
Suppose an investor with state-independent tastes is offered the choice between investment A and investment B.Investment A offers profit of $2,000 with probability 0.4, $4,000 with probability 0.2 and $6,000 with probability 0.4.Investment B offers profit of $2,000 with probability of 0.5 and $6,000 with probability 0.5.If the investor is risk averse, he will choose investment A.
Correct Answer:
Verified
Correct Answer:
Verified
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