Business, 21.03.2020 11:45 hHRS8801

The shape of your utility function implies that you are (a risk-averse or risk-friendly) individual, and, therefore, you ((you would or would not) accept the wager because the difference in utility between B and C is (less than or greater than) the difference between C and A.
Which of the following best explain why the pain of losing $1,000 exceeds the pleasure of winning $1,000 for risk-averse people?
a. The more wealth that risk-averse people have, the less satisfaction they receive from an additional dollar.
b. The utility function of a risk-averse person exhibits the law of diminishing marginal utility.
c. Risk-averse people overestimate the probability of losing money.
d. Risk-averse people are relatively poor and cannot afford to lose any money.

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