Exponential utility functions indicate that the decision maker is
A)risk monitor.
B)risk averse.
C)risk neutral.
D)risk taker.

Name: Exponential utility functions indicate that the decision maker is A)risk monitor. B)risk averse. C)risk neutral. D)risk taker.
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Question

Quizplus · Accepted Answer

Exponential utility functions are typically concave and indicate risk aversion. This means that the decision maker places a higher value on avoiding losses than on achieving gains.

Exponential Utility Functions Indicate That the Decision Maker Is