In the figure below,what is true about the two jobs?
A)Job 1 has a lower 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 a higher expected income than Job 2.

Question

In the figure below,what is true about the two jobs? 
A)Job 1 has a lower 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 a higher expected income than Job 2.

Quizplus · Accepted Answer

The Answer of In the figure below,what is true about the two jobs? 
A)Job 1 has a lower 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 a higher expected income than Job 2.

In the Figure Below,what Is True About the Two Jobs