Refer to Figure g.Lily's benefit function (dashed)is more concave than Millie's (dotted)in Figure g.Millie:
A) is more risk averse than Lily.
B) is less risk averse than Lily.
C) has a larger risk premium than Lily.
D) has a lower certainty equivalent than Lily.

Question

Refer to Figure g.Lily's benefit function (dashed)is more concave than Millie's (dotted)in Figure g.Millie: 
A) is more risk averse than Lily. 
B) is less risk averse than Lily. 
C) has a larger risk premium than Lily. 
D) has a lower certainty equivalent than Lily.

Quizplus · Accepted Answer

The Answer of Refer to Figure g.Lily's benefit function (dashed)is more concave than Millie's (dotted)in Figure g.Millie: 
A) is more risk averse than Lily. 
B) is less risk averse than Lily. 
C) has a larger risk premium than Lily. 
D) has a lower certainty equivalent than Lily.

Refer to Figure G