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QUESTION 50 With a coin-toss, if it is heads you get $1 and if it is...

QUESTION 50 With a coin-toss, if it is heads you get $1 and if it is tails you get $11. If you are not willing to pay $6 for this gamble, you must be A)risk-neutral B)risk-averse C)risk-loving D)unlucky

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Answer #1

expected value = sum of (probability*Outcome) = 0.5*$1+0.5*$11 = $6 Since the value is equal to price both risk loving and ri

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