What term best describes an agent who prefers a sure thing to a gamble of equal expected value?
A)Risk sharing
B)Risk seeking
C)Risk neutral
D)Risk averse
E)Risk premium

Question

Quizplus · Accepted Answer

An agent who prefers a sure thing to a gamble of equal expected value is called risk-averse. They prefer to avoid uncertainty and prefer a guaranteed payoff even if it may be lower than the expected payoff of a gamble.

What Term Best Describes an Agent Who Prefers a Sure