Julia had two options when buying car insurance. The expected value of her wealth would be higher

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Julia had two options when buying car insurance. The expected value of her wealth would be higher with Option A, but Julia chose Option B. From the list below, what can we assume about these policies and Julia’s willingness to take on risk? Check all that apply.

a. Option B was riskier.
b. Option A was riskier.
c. Julia is risk-seeking.
d. Julia is risk-averse.

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Microeconomics

ISBN: 9781260521078

3rd Edition

Authors: Dean S. Karlan, Jonathan J. Morduch

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