With gamble b he either gains 3 or loses 2 with a 50, Ask an Expert

Economics

Frank is offered two gambles. With gamble A, he either gains $2 or loses $1 with a 50% probability. With gamble B, he either gains $3 or loses $2 with a 50% probability. Frank prefers gamble B to gamble A. What can we conclude?

I) Frank is risk averse.
II) Frank is risk neutral.
III) Frank is risk loving.
IV) Frank suffers from gambling addiction.
V) Frank is irrational.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M966340

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