Suppose that an individual's utility of money function is U = 10M ^0.5. This individual can best be described as risk: A) Indifferent. B) Averse. C) Neutral. D) Loving. E) None of the above.

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The utility function U = 10M^0.5 suggests diminishing marginal utility of money, which is characteristic of risk aversion. This means the individual values each additional unit of money less than the previous one, indicating a preference for certainty over risk.

Suppose That an Individual's Utility of Money Function Is U