In figure below, what is true about the two jobs?
A) Job 1 has a larger standard deviation than Job 2.
B) All outcomes in both jobs have the same probability of occurrence.
C) A risk-averse person would prefer Job 2.
D) A risk-neutral person would prefer Job 1.
E) Job 1 has the same expected income as Job 2.

Question

In figure below, what is true about the two jobs? 
A) Job 1 has a larger standard deviation than Job 2. 
B) All outcomes in both jobs have the same probability of occurrence. 
C) A risk-averse person would prefer Job 2. 
D) A risk-neutral person would prefer Job 1. 
E) Job 1 has the same expected income as Job 2.

Quizplus · Accepted Answer

The Answer of In figure below, what is true about the two jobs? 
A) Job 1 has a larger standard deviation than Job 2. 
B) All outcomes in both jobs have the same probability of occurrence. 
C) A risk-averse person would prefer Job 2. 
D) A risk-neutral person would prefer Job 1. 
E) Job 1 has the same expected income as Job 2.

In Figure Below, What Is True About the Two Jobs