Given the choice between a sure-thing option and a gamble option with the same expected payoff, a____________ person will choose gamble.
A)risk averse
B)risk loving
C)risk neutral
D)risk avoiding
E)none of the above

Question

Quizplus · Accepted Answer

A risk-loving person is more inclined to choose a gamble option over a sure thing when the expected payoffs are the same, as they derive utility from the risk itself.

Given the Choice Between a Sure-Thing Option and a Gamble