Truefalsea the risk premium is equal to expected gamble, Ask an Expert

Economics

True/False

a) The risk premium is equal to expected gamble minus the certainty equivalent.

b) In the Principal-agent framework, the principal can observe the effort exerted by the agent.

c) Risk premium is always a negative number.

d) The expected utility from a gamble is always smaller than the utility received from getting the amount of the expected return for certain.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M92198689

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