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Posted on Sep 12, 2024

Alicia buys a $ 2 0 lottery ticket with a 1 % chance of winning $ 1 , 5 0 0 and a 9 9

Alicia buys a $

20

lottery ticket with a

1 %

chance of winning $

1, 500

and a

99 %

chance of winning zero. Based on this, what can we infer about Alicia's risk preference?

Group of answer choices

Alicia is risk averse.

Alicia is risk neutral.

Alicia is risk loving.

We cannot infer Alicia's risk preferences from the information given.

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