Question: Question 3 3 You are faced with two options: Option A: Guaranteed gain of $ 1 0 0 Option B: 5 0 % chance of
Question
You are faced with two options:
Option A: Guaranteed gain of $
Option B: chance of winning $ chance of losing $
You value security and dislike potential losses. Based on your risk aversion tendencies, which option are you more likely to choose?
Option A guaranteed gain
Option B higher potential reward
The answer depends on your individual risk tolerance.
There is not enough information to determine the answer.
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