Bob invests $75 in an investment that has a 50% chance of being worth $100 and a 50% chance of being worth $0. From this information we can conclude that Bob is
A)risk preferring.
B)risk neutral.
C)risk averse.
D)irrational.

Question

Quizplus · Accepted Answer

Bob is willing to take a chance on the investment with a 50% chance of receiving a higher return, indicating that he is risk preferring.

Bob Invests $75 in an Investment That Has a 50