Of two baskets with identical standard deviations,a risk-averse person will prefer the basket with the higher expected value.

Name: Of two baskets with identical standard deviations,a risk-averse person will prefer the basket with the higher expected value.
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Question

Quizplus · Accepted Answer

A risk-averse person would prioritize minimizing their risk, but if the standard deviations are identical, then the only factor left to consider is the expected value, which they would prefer to be higher.

Of Two Baskets with Identical Standard Deviations,a Risk-Averse Person Will