A person is risk averse if:
A) his indifference curve is tangent to the constant expected consumption line at a point on the guaranteed consumption line.
B) he views variability as a bad thing.
C) for a given level of expected consumption, he prefers the riskless bundle to a risky one.
D) All of these answer choices are correct.

Question

Quizplus · Accepted Answer

A) This is one characteristic of being risk averse, but not the only one.
B) This is a defining characteristic of being risk averse.
C) This is another defining characteristic of being risk averse, and is known as the preference for a riskless option. 
D) All of these answer choices are correct in describing the attributes of a person who is risk averse.

A Person Is Risk Averse If