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Incorrect Question 13 0/0.27 pts A risk-averse individual prefers the expected utility of income of a risky gamble to the utility of expected income of the same risky gamble outcomes with highly divergent probabilities so that one of the outcomes is almost certain outcomes with 50-50 odds to those with more divergent probabilities, no matter what the dollar outcomes. . outcomes with higher probabilities assigned to more favorable outcomes, no matter what the outcomes are. the utility of expected income of a risky gamble to the expected utility of income of the same risky gamble.

Answer 1

Answer

outcomes with higher probabilities assigned to more favorable outcomes, no matter what the outcomes are.

For a risk averse individual they coose to save or preserve capital in favour of a risky return.

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