Mike is the proud owner of Prospect X, which he values at $10 (so, for Mike,...

 

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Mike is the proud owner of Prospect X, which he values at $10 (so, for Mike, CE(X) = $10). If EV(X) = $12, what is the most you can say about Mike's risk preferences and/or his utility of wealth function? (Select all that apply) Mike's utility of wealth function must be concave. Mike must be risk averse. For Mike, it must be the case that U(EV(X)) > $10. □ If Mike had to choose between Prospect X and receiving $9 with certainty, he would choose the $9. Mike is the proud owner of Prospect X, which he values at $10 (so, for Mike, CE(X) = $10). If EV(X) = $12, what is the most you can say about Mike's risk preferences and/or his utility of wealth function? (Select all that apply) Mike's utility of wealth function must be concave. Mike must be risk averse. For Mike, it must be the case that U(EV(X)) > $10. □ If Mike had to choose between Prospect X and receiving $9 with certainty, he would choose the $9.

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