We suggest that you insure yourself for $2 per month against the theft or loss of your cell phone that you bought for $1,000 and that you expect to replace in 5 years. You estimate the risk of losing or having your cell phone stolen at 20%. If you do not accept this assurance, what does this say about you?

choose an answer:

a. You are a risk taker.

b. You are risk neutral.

c-. You are a riscophobe.

d. We can not know.