A risk-neutral individual will make investment decisions purely based on expected value because
A) she doesn't care about utility.
B) utility is a linear function of wealth.
C) she loves to take risk.
D) expected value is always more than expected utility.
B
Economics
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Because banks are act as dealers in financial instruments such as bonds, foreign currency and derivatives, they are exposed to
A) credit risk. B) liquidity risk. C) trading risk. D) interest risk.
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