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Author Question: Bob invests 75 in an investment that has a 50 chance of being worth 100 and a 50 chance of being ... (Read 179 times)

vicotolentino

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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.


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manuelcastillo

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Reply #1 on: Jul 1, 2018
Answer to Question 1

A

Answer to Question 2

C


vicotolentino

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Reply 2 on: Jul 1, 2018
Gracias!

skipfourms123

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Reply 3 on: Yesterday
Wow, this really help

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