Identify the utility function of a risk averse individual. A)U(W) = $\surd$W B)U(W) = W³ C)U(W) = W² D)U(W) = W E)U(W) = 1/W

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The utility function of a risk-averse individual is typically concave, indicating that they derive less utility from each additional unit of wealth. The given choice A, despite its unconventional notation, suggests a non-linear relationship with wealth, which aligns with risk aversion. Other options either represent linear relationships (indicating risk neutrality) or an inverse relationship with wealth, which does not accurately reflect risk aversion.

Identify the Utility Function of a Risk Averse Individual √\surd√ W B)U(W) = W3 C)U(W) = W2 D)U(W) = W

Identify the Utility Function of a Risk Averse Individual $\surd$ W
B)U(W) = W³
C)U(W) = W²
D)U(W) = W