One Class of "Ready-Made" Utility Functions Is Called Exponential Utility

Multiple Choice

One class of "ready-made" utility functions is called exponential utility.Exponential utility has an adjustable parameter called risk tolerance.The risk tolerance parameter measures:

A) how much money the decision maker has to spend
B) the decision maker's attitude toward risk
C) how much risk there is in a given decision
D) the probability of an unfavorable outcome
E) None of these options