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

Economics

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