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Here are three lotteries played by three individuals that cost $100. Could you tell whether they are risk-neutral, risk-seeking(loving) or risk-averse? The percentages in ()
Here are three lotteries played by three individuals that cost $100. Could you tell whether they are risk-neutral, risk-seeking(loving) or risk-averse? The percentages in () are the probabilities associated with the events.
1)Win (50%): gets $200; lose (50%): gets $20;
2)Win (50%): gets $170; lose (50%): gets $10;
3)Win (20%): gets $400, lose (80%): gets $25.
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Step: 2
Step: 3
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