If Shaniq is a risk averse, then
A) her cost of risk exceeds $0.
B) she has diminishing marginal utility of wealth.
C) she is willing to buy insurance if the cost of insurance is low enough.
D) all of the above.

Question

Quizplus · Accepted Answer

A risk-averse individual typically has a cost of risk greater than zero, diminishing marginal utility of wealth, and is willing to buy insurance if it is affordable.

If Shaniq Is a Risk Averse, Then