A risk neutral person is indifferent between options A and B

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Suppose option A has a higher variance than option B. Which of the following statements is, in general, true?

A. A risk neutral person is indifferent between options A and B.

B. A risk averse person prefers option B to option A.

C. A risk averse person prefers option A to option B.

D. Insufficient information to determine.

Reference no: EM13743190

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