Bob invests $50 in an investment that has a 50% chance of being worth $100 and a 50% chance of being worth $0.From this information we can conclude that Bob is NOT
A) risk loving.
B) risk neutral.
C) risk averse.
D) rational.

Question

Quizplus · Accepted Answer

Since Bob is investing in an investment that has a 50% chance of being worth nothing, it shows that he wants to avoid risk. Therefore, he is risk averse.

Bob Invests $50 in an Investment That Has a 50