Which of the following statements about the ‘What is Risk?’ section of the lecture material based on the diagram below are TRUE:

A risk-averse individual would always prefer A to B because they both offer the same expected reward while B has a higher level of risk than A.
A risk-averse individual would always prefer A to C because A has a significantly lower level of risk than C.

Question

Which of the following statements about the ‘What is Risk?’ section of the lecture material based on the diagram below are TRUE: 
 
 A risk-averse individual would always prefer A to B because they both offer the same expected reward while B has a higher level of risk than A. 
 A risk-averse individual would always prefer A to C because A has a significantly lower level of risk than C.

Answer

Neither of the statements are true (both are false)

Answer

Only statement 1 is true

Answer

Only statement 2 is true

Answer

Both statements are true (neither are false)

Crowdly

Which of the following statements about the ‘What is Risk?’ section of the lectu...

Хочете миттєвий доступ до всіх перевірених відповідей на moodle.telt.unsw.edu.au?