Risk Tolerance: How do you react to risk? Some people run from risk, some

love the thrill of taking risk, while most are willing to analyze and take chances

that are understood and rewarded. Economists and psychologists have done

experiments like the one below to test people$$s behavior toward risk taking.

Wager A $$100100\%$

Wager C $$049\%$ and $$20051\%$

Wager B $$050\%$ and $$20050\%$

Wager D $$099\%$and $$11,1001\%$

$1$A$)$ Consider Wagers A and B$.$ Suppose you are required to enter one of these for an

entrance fee of $$100.$ Which would you choose?

If you prefer wager A$,$ please click on A

If you prefer wager B$,$ please click on B

$1$B$)$ Consider Wagers B and C$.$ Suppose you are required to enter one of these for an

entrance fee of $$100.$ Which would you choose?

If you prefer wager B$,$ please click on B

If you prefer wager C$,$ please click on C

$1$C$)$ Consider Wagers A and C$.$ Suppose you are required to enter one of these for

an entrance fee of $$100.$ Which would you choose?

If you prefer wager A$,$ please click on A

If you prefer wager C$,$ please click on C

$1$D$)$ Consider Wagers B and D$.$ Suppose you are required to enter one of these for

an entrance fee of $$100.$ Which would you choose?

If you prefer wager B$,$ please click on B

If you prefer wager D$,$ please click on D