1 answer

True or False: H = ($120, 0.4; $200, 0.6) K = ($150, p; $300, 1 −...

Question:

True or False:

H = ($120, 0.4; $200, 0.6) K = ($150, p; $300, 1 − p)

The lowest value of K is greater than the lowest value of H, and the highest value of K is greater than the highest value of H, so everyone – regardless of risk preferences – will prefer K to H.


Answers

RD 6) False expeeled value Bom Lotey t G- EVㅐ |20%4 200×-6 48 +120 = 168, = 1682 300-150p → 150p>132, P。88 he

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