A risk adverse individual can be defined as someone who

0 votes
    has a diminishing marginal utility of income.
     prefers a more certain income with a low standard deviation of possible outcomes to a higher income with a higher standard deviation of possible outcomes.
     prefers a more certain income with a high standard deviation of possible outcomes to a higher income with a lower standard deviation of possible outcomes.
     Both 1 and 2.
asked Jun 2, 2013 in Economics by anonymous
    

1 Answer

0 votes
Both 1 and 2.
answered Jun 3, 2013 by Xyz ~Expert~ (3,650 points)



...