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Author Question: Bob invests 25 in an investment that has a 50 chance of being worth 100 and a 50 chance of being ... (Read 195 times)

mynx

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on: Jul 1, 2018
Bob invests 25 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) Any one of the three above.

Question 2

Catherine is risk averse. When faced with a choice between a gamble and a certain level of wealth she will
 
  A) always prefer the gamble.
  B) always prefer the certain level of wealth.
  C) prefer the gamble if the expected utility from it is higher than the utility from the certain level of wealth.
  D) prefer the certain level of wealth if the expected utility from the gamble is higher than the utility of the certain level of wealth.
Microeconomics ¦ Perloff ¦ 8th Edition
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swimkari

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Reply #1 on: Jul 1, 2018
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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mynx

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Reply 2 on: Jul 1, 2018
Gracias!

raenoj

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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