Author Question: Bob invests 75 in an investment that has a 50 chance of being worth 100 and a 50 chance of being ... (Read 126 times)

vicotolentino · **on:** Jul 1, 2018

Bob invests 75 in an investment that has a 50 chance of being worth 100 and a 50 chance of being worth 0. From this information we can conclude that Bob is

A) risk loving.
B) risk neutral.
C) risk averse.
D) irrational.

Question 2

Bob invests 50 in an investment that has a 50 chance of being worth 100 and a 50 chance of being worth 0. From this information we can conclude that Bob is NOT

A) risk loving.
B) risk neutral.
C) risk averse.
D) rational.