People who are risk neutral
A) prefer a sure thing over a gamble with a higher expected value.
B) choose the outcome with the highest expected value.
C) choose the outcome with the lowest expected value.
D) prefer gambles with lower expected values but potentially higher winnings over a sure thing.
E) do not partake in any risky activities.

Question

Quizplus · Accepted Answer

Risk-neutral individuals make their decisions based on the expected value of outcomes, choosing the option with the highest expected value. They do not factor in the level of risk involved in a decision.

People Who Are Risk Neutral