Multiple Choice
A risk-averse person
A) has a utility curve where the slope increases with wealth,and might take a bet with a 80 percent chance of winning $300 and a 20 per chance of losing $300.
B) has a utility curve where the slope increases with wealth,and would never take a bet with a 80 percent chance of winning $300 and a 20 per cent chance of losing $300.
C) has a utility curve where the slope decreases with wealth,and might take a bet with a 80 percent chance of winning $300 and a 20 per chance of losing $300.
D) has a utility curve where the slope decreases with wealth,and would never take a bet with a 80 percent chance of winning $300 and a 20 per cent chance of losing $300.
Correct Answer:
Verified
Correct Answer:
Verified
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