Question: Individual Exercise: Define your risk attitude Scenario: . . . There is 75% probability that Team 1 will beat Team 2 If you bet on

Individual Exercise: Define your risk attitude

Individual Exercise: Define your risk attitude Scenario: . . . There is 75% probability that Team 1 will beat Team 2 If you bet on on Team 1, and Team 1 wins, you will receive twice your bet However, if you bet on Team 2, and Team 2 wins, you will get five times your bet You can bet up to 1,000 dollars Which team will you bet on? You can only bet on one team How much will you bet? Based on your chosen bet, what scores would you assign to your risk appetite. risk tolerance and risk attitude

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