A rational person maximizes A) risk. B) return. C) expected ...

[cherise1989]

A rational person maximizes
 
  A) risk.
  B) return.
  C) expected utility.
  D) return variance.

Question 2

The Friedman-Savage utility function can explain why
 
  A) people buy automobile insurance.
  B) somebody becomes addicted to gambling.
  C) people become more risk averse as their wealth increases.
  D) people place small bets to have a chance at winning a large amount.

[Perkypinki]

Answer to Question 1

C

Answer to Question 2

D