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.
C
You might also like to view...
Which of the following is a cost of economic growth?
A. the sacrifice of current consumption B. inflation in consumption goods C. the sacrifice of future consumption D. excessive depletion of a nation's natural resources
More farmers have recently entered the corn industry. In addition there has been a technological advancement in the fertilizer industry providing corn farmers with a cheaper and a more effective fertilizer
In the market for corn, the effects these changes will have on the equilibrium price and quantity are A) price will increase, and quantity will decrease. B) price will increase, and the effect on quantity is indeterminate. C) price will decrease, and quantity will increase. D) price will decrease, and the effect on quantity is indeterminate.