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Pascal is risk-averse while Marion is risk-neutral. Both are confronted with the following gamble: win $5,000 with the probability of 80 percent or lose $15,000
Pascal is risk-averse while Marion is risk-neutral. Both are confronted with the following gamble: win $5,000 with the probability of 80 percent or lose $15,000 with a probability of 20 percent. One can predict that
Select one:
a. only Pascal will accept the gamble.
b. only Marion will accept the gamble.
c. neither will accept the gamble.
d. both might accept the gamble.
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