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Which of the following statements are true regarding the relative and absolute measures of risk aversion if wealth outcomes are positive and that individuals are
Which of the following statements are true regarding the relative and absolute measures of risk aversion if wealth outcomes are positive and that individuals are risk averse? (check all that apply) O) if absolute risk aversion is increasing (with wealth increases), then relative risk aversion must be increasing also ) both measures should have the same sign for the same individual / preference if relative risk aversion is declining (with wealth increases), then absolute risk aversion must be declining also )if absolute risk aversion is declining (with wealth increases), then relative risk aversion must be declining also
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