A person who strongly wishes to avoid risk would pick which of the following choices?
A) a 50% chance of winning $750 or a 50% chance of winning $0
B) a 100% of getting $375
C) a 50% chance of getting $750, 25% chance of getting &1,500 and a 25% chance of losing $1,500
D) All of the above are equal to a person who wishes to avoid risk.

Question

Quizplus · Accepted Answer

A person who strongly wishes to avoid risk would choose the option with the most certainty, which is option B, with a 100% chance of getting $375. The other options involve greater uncertainty and a higher potential for loss.

A Person Who Strongly Wishes to Avoid Risk Would Pick