Question: =+e. We can define someone as risk averse if, when faced with two gambles that give rise to the same expected consumption level, she prefers

=+e. We can define someone as risk averse if, when faced with two gambles that give rise to the same expected consumption level, she prefers the one that has less risk. Using this definition, which bundle on our line should a risk-averse individual prefer? Could the same bundle be optimal for someone that loves risk?

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