An individual is on the game show Squeal or No Squeal, and she has a choice between receiving a certain gain of $100,000 and receiving a 50% chance of winning $200,000 or zero. If she takes the gamble instead of the certain $100,000, she is acting ________.
A) like a person who is risk-neutral
B) like a person who is risk averse
C) like a person who is a risk lover
D) irrationally
Correct Answer:
Verified
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