Question
The concept of marginal utility for a risk-averse investor is best described by which of the following statements? The utility function of a risk-averse investor
The concept of marginal utility for a risk-averse investor is best described by which of the following statements?
| The utility function of a risk-averse investor is concave because as a person enjoys greater levels of net wealth additional dollars take on less value from a well-being standpoint. | ||
| The utility function of a risk-averse investor is a straight 90-dgree line because each marginal dollar of benefit is equal to earlier dollars. | ||
| The utility function of a risk-averse investor is convex because as a person enjoys greater levels of net wealth additional dollars take on greater marginal value. | ||
| The utility function of a risk-averse investor is a straight 45-degree line because each marginal dollar of benefit is equal to earlier dollars. |
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Venture Capital Valuation
Authors: Lorenzo Carver
1st Edition
0470908289, 978-0470908280
