Option A provides $9,000 with probability 50 percent or $11,000 with probability 50 percent. Option B provides $8,000 with probability 50 percent or $12,000 with probability 50 percent. For most people the cost of risk associated with B is
A) less than that associated with A.
B) the same as that associated with A.
C) exactly twice that associated with A.
D) more than twice that associated with A.
D
Economics
You might also like to view...
Better health allows people to work harder, which raises a country's total income. This indicates that in effect, better health
A) shifts out a country's production possibilities frontier. B) is a primary cause of price increases. C) increases consumer surplus. D) reduces the incentive to work.
Economics
Mutual savings banks are owned by
A) shareholders. B) partners. C) depositors. D) foreign investors.
Economics