What type of risk behavior does the person exhibit who is willing to pay $5 for the chance to bet $60 on a game where 20% of the time the bet returns $100, and 80% of the time returns $50? Explain
What will be an ideal response?
This person is risk preferring. The bet is fair. The expected wealth of the person is the same whether or not the bet is made. However, this person is willing to pay $5 to make this fair bet.
Economics
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Which of the following are policy tools used by the Federal Reserve?
i. the federal personal income tax ii. open market operations iii. changing the required reserve ratio A) i only B) ii only C) iii only D) ii and iii E) i, ii, and iii
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The main determinants of investment are the interest rates and expected profit
a. True b. False Indicate whether the statement is true or false
Economics