A risk averse individual:
A) Will always accept a fair gamble.
B) Will not accept a fair gamble for large bets.
C) Will sometimes accept a fair gamble for very small bets.
D) Answers b and c are correct.
E) All of the above are correct.

Question

Quizplus · Accepted Answer

Risk-averse individuals are generally unwilling to accept fair gambles for large bets due to their preference for certainty over uncertainty. However, they might accept fair gambles for very small bets where the potential loss is insignificant to them, indicating that both B and C are correct scenarios for a risk-averse individual.

A Risk Averse Individual