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Author Question: A person who is risk-neutral will A) pay a small risk premium when making a choice. B) pick a ... (Read 117 times)

tichca

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on: Jul 1, 2018
A person who is risk-neutral will
 
  A) pay a small risk premium when making a choice.
  B) pick a slightly less risky option with a slightly lower expected value.
  C) pick the option with the highest expected value.
  D) None of the above.

Question 2

Indifference curves on the same indifference map can have different shapes.
 
  Indicate whether the statement is true or false


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asdfasdf

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

C

Answer to Question 2

True . Indifference curves can meet all the necessary requirements and still have different shapes.


tichca

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Reply 2 on: Jul 1, 2018
Great answer, keep it coming :)

cpetit11

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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