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Use the Following to Answer Question

Question 56

Multiple Choice

Use the following to answer question:
Table 14.11
Income
Clipper's Total Utility
Prince's Total Utility
$ 0
0
0
20,000
100
200
40,000
195
300
60,000
285
350
80,000
370
375
100,000
450
387
-(Table 14.11) Because Clipper is _____ risk averse than Prince, Prince will pay the _____ risk premium.


A) more; larger
B) less; larger
C) less; smaller
D) more; smaller

Correct Answer:

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