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If so, ind it. I no, explain. 7. Suppose, as usual, Elmos utility function over gambles satisfies the expected utility proper

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a) When Elmo is risk-averse, he would prefer to avoid taking risks. In such a scenario, Elmo would choose the gamble with higher expectations of occurrence. Hence, Elmo would definitely prefer g to h.

b) If Elmo is risk neutral, it means that he indifferent with reference to any financial risk. In such a case Elmo is indifferent t both g and h and can choose any of the two.

c) When Elmo is risk-loving, it means that Elmo prefers risk when it comes to financial decision making. In such a case Elmo might prefer h to g if h promises to pay higher returns than g.

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