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Dora is offered a chance to play a game. There are four possible outcomes for this game -- she can win $10, win $20, lose
Dora is offered a chance to play a game. There are four possible outcomes for this game -- she can win $10, win $20, lose $5, or lose $1. The game costs $6 to play, and Dora is not interested at that price. From this, we know Dora is [ Select ] and, by economists' assumptions, this Select] makes Dora [ Select ] risk neutral someone who gets satsfaction from risky behavior ("risk loving") risk averse (Hint: If you do a calculation for this question to help you answer it, treat wins as positive values and losses as negative values.) Question 9 2 pts "I can't believe you won't go skydiving," Jun's girlfriend says. "The chance of anything going wrong is just so small!" "I know," Jun replies. "But if it goes wrong, I could lose my life -- that's just too horrible an outcome for me to risk it." Jun's risk decision seems like it's most likely to be made considering current yield standard deviation O value at risk expected value Dora is offered a chance to play a game. There are four possible outcomes for this game -- she can win $10, win $20, lose $5, or lose $1. The game costs $6 to play, and Dora is not interested at that price. From this, we know Dora is [ Select ] and, by economists' assumptions, this makes Dora [ Select ] most people. [ Select (Hint: If you similar to different from to help you answer it, treat wins as positive values and losses as negative values.)
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