Which of the following represents the utility function of someone that is risk neutral? A)U(w)= w + 17 B)U(w)= w²+ w + 17 C)U(w)= w^1/2+ w - 17 D)U(w)= w^1/8- 17

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Quizplus · Accepted Answer

A utility function of U(w) = w + 17 represents someone who is risk neutral, because their utility function is only determined by their wealth, and there is no consideration of risk or variability in outcomes.

Which of the Following Represents the Utility Function of Someone