What term best describes an agent who is indifferent between a sure thing and a gamble of equal expected value?
A)Risk sharing
B)Risk seeking
C)Risk neutral
D)Risk averse
E)Risk premium

Question

Quizplus · Accepted Answer

A risk neutral agent is indifferent between a sure thing and a gamble of equal expected value. This means that the agent is not risk averse (avoiding risk) or risk seeking (actively seeking risk), but rather has no preference between the two options.

What Term Best Describes an Agent Who Is Indifferent Between