American_Bankers_Association
CTFA · Question #85
Carrie has a "certainty equivalent" to a risky gamble's expected value that is less than the gamble's expected value. Carrie shows:
The correct answer is A. Risk aversion. See the full explanation below for the reasoning.
Investment Management
Question
Carrie has a "certainty equivalent" to a risky gamble's expected value that is less than the gamble's expected value. Carrie shows:
Options
- ARisk aversion
- BRisk preference
- CRisk indifference
- DA strange outlook on life
How the community answered
(33 responses)- A76% (25)
- B6% (2)
- C15% (5)
- D3% (1)
Topics
#certainty equivalent#risk aversion#expected value#investor behavior
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