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Property does this imply about their utility function

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Suppose an agent is offered a choice between the gamble (0.4,50;0.6,0) { that is, a 40% chance of winning $50, a 60% chance of getting $0 { and $15 for sure. Suppose further that the agent chooses the $15. What mathematical property does this imply about their utility function? Are they risk averse, risk neutral, or risk seeking?

Reference no: EM132317987

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