Question
Ivy is willing to pay $2.00 for a lottery ticket that has an expected payoff of $0.001. This choice demonstrates that Ivy has a certainty
Ivy is willing to pay $2.00 for a lottery ticket that has an expected payoff of $0.001. This choice demonstrates that Ivy
| has a certainty equivalent of the lottery that is equal to $0.001. | ||
| is risk loving | ||
| has a certainty equivalent of the lottery that is equal to $2.00 | ||
| is risk averse |
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Financial Management Core Concepts
Authors: Raymond M Brooks
2nd edition
132671034, 978-0132671033
