Waiting for answer This question has not been answered yet. You can hire a professional tutor to get the answer.
QUESTION
Consider two options. A lottery which pays $100 with probability 0.5 and $0 with probability 0. Receiving $50 for certain. Select one: A risk averse...
Consider two options.
A: A lottery which pays $100 with probability 0.5 and $0 with probability 0.5.
B: Receiving $50 for certain.
Select one:
a. A risk averse individual would choose option B.
b. A risk loving individual would choose option B.
c. A risk neutral individual would strictly prefer option B.
