Which of the following games involving the roll of a single die is a fair bet?
A) Bet 1 and receive 1 if 3 or 4 comes up.
B) Bet 1 and receive 1 if 3, 4, or 5 comes up.
C) Bet 1 and receive 4 if 6 comes up.
D) None of the bets is a fair bet.
Question 2
For a risk-neutral person, the expected utility associated with various levels of wealth
A) is above the person's utility function.
B) is below the person's utility function.
C) is equal to the person's utility function.
D) does not exist.