Risk neutral is a characteristic of an agent who has a convex utility function (increasing marginal utility).

Name: Risk neutral is a characteristic of an agent who has a convex utility function (increasing marginal utility).
Brand: Quizplus
Rating: 4.9 (44 reviews)

Question

Quizplus · Accepted Answer

A risk-neutral agent has a linear utility function, not a convex one. A convex utility function indicates that the agent is risk-averse, while a concave function indicates that the agent is risk-seeking.

Risk Neutral Is a Characteristic of an Agent Who Has