Dave is risk-averse and Scott is risk-neutral.Each is confronted with the following gamble: win $5000 with a probability of 65% or lose $9000 with a probability of 35%.One can predict that
A) both will definitely accept the gamble.
B) only Scott will accept the gamble.
C) only Dave will accept the gamble.
D) neither will accept the gamble.
E) Scott will accept the gamble and Dave might.
Correct Answer:
Verified
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