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If the market interest rate is 10% and a decision maker's risk adjusted discount rate is 12%, then the decision maker:?

 a. is risk averse. 

 b. has a certainty-equivalent coefficient that is greater than one. 

 c. is risk neutral. 

 d. None of the above is correct. 

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Question added by Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company
Date Posted: 2015/07/29
Yaqoub Alomar
by Yaqoub Alomar , Civil Engineer , Al-Zubeir municipality

Agree with the given answers

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Gayasuddin Mohammed
by Gayasuddin Mohammed , Advocate , Practicing Law before High Court at Hyderabad

Risk Averse is the correct option.

khaled elkholy
by khaled elkholy , HR MANAGER , misk for import & export

Agree with all expertsssssssssssssss

Khaled Anwar
by Khaled Anwar , Senior Sales Engineer , "Automotive company''

The answer is : Option ( A )

Emad Mohammed said abdalla
by Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company

  1. The correct answer was: a. is risk averse.

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