A risk-neutral person will invest in a project by examining if
A)the expected utility associated with the project is positive.
B)the marginal utility associated with the project is positive.
C)the expected value is positive.
D)All of the above.

Question

Quizplus · Accepted Answer

A risk-neutral person makes decisions based on the expected value of the project, without considering their individual preferences or attitudes towards risk. Therefore, the only consideration for a risk-neutral person when investing in a project is whether the expected value is positive.

A Risk-Neutral Person Will Invest in a Project by Examining