Question

If Joanna is risk averse, then Group of answer choices her utility function exhibits the property of decreasing utility. her utility function exhibits the property of increasing marginal utility. she dislikes bad things more than she likes comparable good things. she is unlike most people, because most people are not risk averse.

Answer 1

Answer:

The correct answer is letter "C": she dislikes bad things more than she likes comparable good things.

Explanation:

Risk-Averse defines an investor who is able to tolerate only a small degree of investment risk. An investor who is risk-averse wants less risk by decision and is able to take less return. These are individuals who are unwilling to leave their comfort zone to explore areas that could provide them higher benefits.

Therefore, if Joana is risk-averse, it is possible she dislikes negative things more than what she likes comparable positive things.