If a gamble has an expected value of $10, then one can predict that:
A)only risk-averse people will take the gamble.
B)no risk-averse person will take the gamble.
C)all risk-neutral people will take the gamble.
D)the gamble never pays out more than $10.

Question

Quizplus · Accepted Answer

Since the expected value of the gamble is positive, any risk-neutral person would accept it (and so might some risk-averse people).

If a Gamble Has an Expected Value of $10, Then