Pascal is risk-averse while Marion is risk-neutral. Both are confronted with the following gamble: win $5,000 with the probability of 65% or lose $9,000 with a probability of 35%. One can predict that:
A) both might accept the gamble.
B) only Pascal will accept the gamble.
C) only Marion will accept the gamble.
D) neither will accept the gamble.
Correct Answer:
Verified
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