The maximum that a risk- averse individual is willing to pay for full- insurance coverage is:
A)the certainty equivalent.
B)the value of the expected loss from a risky project.
C)the difference between the expected and the certainty equivalent wealth.
D)the difference between the initial and the certainty equivalent wealth.

Question

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The Answer of The maximum that a risk- averse individual is willing to pay for full- insurance coverage is:
A)the certainty equivalent.
B)the value of the expected loss from a risky project.
C)the difference between the expected and the certainty equivalent wealth.
D)the difference between the initial and the certainty equivalent wealth.

The Maximum That a Risk- Averse Individual Is Willing to Pay