Fred is willing to pay $1 for a lottery ticket that has an expected value of zero. This proves that Fred| ?

Question

a. is risk averse.

b. has a certainty-equivalent coefficient that is equal to one.

c. is risk neutral.

d. None of the above is correct.

Elke Woofter · Answer

I am not a gambler, however I am willing to pay a $1 or $2 for the risk of loosing.

However if I loose our children have won ... the State Lotteries fund college funds which pays tuition and some of the books needed ... at least that way children with a3.0 average can attend school and get a better education... so I do chose option D) and every one has there own perspective on this issue

Khaled Anwar · Answer

The answer is : Option ( D )

Ismael Hamad · Answer

d. None of the above is correct>>>>>>>>

Yaqoub Alomar · Answer

Agree with the given answers

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Gayasuddin Mohammed · Answer

(d) None of the options is the correct answer

khaled elkholy · Answer

None of the above is correct.....................

Ramesh Sehgal · Answer

I agree with D. He is not risk averse.He is not risk neutral and certainty coefficient is not equal to one. Hence none is correct.

Ayoub Tartir , PMP, GWCPgM, CISA, CISSP, CAP, CSSLP, FITSP-D, CEH, CHFI, CCNA, CCNA Security, Security+, Network+ · Answer

Option (D) None of the above is correct

Emad Mohammed said abdalla · Answer

The correct answer was: d. None of the above is correct.. None of the above is correct.

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Fred is willing to pay $1 for a lottery ticket that has an expected value of zero. This proves that Fred| ?

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