Multiple Choice
A person who is risk averse might accept a 50% chance of losing $100 today in exchange for a 50% chance of winning $125 in two years if the interest rate was
A) 9% but not 10%
B) 10% but not 11%
C) 11% but not 12%
D) None of the above is correct;a risk averse person would not accept any of the above bets.
Correct Answer:
Verified
Correct Answer:
Verified
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