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Joe is a risk-averse decision maker. Which of the following lotteries will he prefer? L1: With probability 0.10 , Joe loses $100. With probability 0.90
Joe is a risk-averse decision maker. Which of the following lotteries will he prefer? L1: With probability 0.10 , Joe loses $100. With probability 0.90 , Joe receives $0. L2: With probability 0.10 , Joe loses $190. With probability 0.90 , Joe receives $10
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