You have inherited a lottery ticket may be a $10,000 winner. You have a 0.25 chance of winning the $10,000 and a 0.75 chance of winning $0. You have an opportunityto sell the lottery ticket for $2,500. Would you be selling this lottery ticket if you are risk averse? Risk averse person would not sell this if he/she does not have positive expected GAIN from sales of it even though they can have positive transaction amount.
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You have inherited a lottery ticket may be a $10,000 winner. You have a 0.25 chance of winning the $...
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