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Suppose We Can Represent Brandon's Preferences for Water with an Expected

Question 25

Multiple Choice

Suppose we can represent Brandon's preferences for water with an expected utility function U(WR,WD) = (1/4) √WR + (3/4) √WD, where WD represents a quantity of water during a drought and WR represents a quantity of water in a rainy season.Brandon is:


A) risk averse.
B) risk neutral.
C) risk loving.
D) There is not enough information to answer this question.

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