A risk-averse individual would:
A. prefer a risky prospect with an expected value of $5 to a certain amount of $5.
B. prefer $5 with certainty to a risky prospect with the expected value of $50.
C. be indifferent between a risky prospect with an expect value of $5 and a certain amount of $5.
D. prefer $5 with certainty to a risky prospect with the expected value of $5.
Answer: D
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a. True b. False Indicate whether the statement is true or false
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