When faced with an insurance policy whose premium exceeds the expected value of the claim:
A) no one will buy it.
B) only risk-tolerant individuals will buy it.
C) risk-averse individuals will buy it as long as the utility associated with the insurance is greater than the expected utility without the insurance.
D) risk-averse individuals will buy it as long as the utility associated with the insurance is less than the expected utility without the insurance.
Correct Answer:
Verified
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A)financial
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Q22: Use the following to answer question:
Figure: Differences
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A)rise as
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