In the risky venture example, suppose there is no riskless alternative; the only two possible decisions are

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In the risky venture example, suppose there is no riskless alternative; the only two possible decisions are the less risky venture and the more risky venture.

Explore which of these is the preferred alternative for a range of risk tolerances. Can you find a cutoff point for the risk tolerance such that the less risky venture is preferred for risk tolerances below the cutoff and the more risky venture is preferred otherwise?

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Practical Management Science

ISBN: 9781111531317

4th Edition

Authors: Wayne L. Winston, S. Christian Albright

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