Business, 30.03.2021 05:40 Bidboidipper

I am a rational and risk-averse person, and I have an option of making the following bet: I receive $500 cash, after which I roll a normal 6-sided die. Whatever I roll, I must pay $200 times the value of the roll of the die (so if make the bet and roll a ‘2’, I get $500, then have to pay out $400, thus I win $100 in total). 10. If my goal is to maximize my personal utility, should I accept this bet, and does my exact level risk aversion affect whether or not I should accept the bet? I should accept the bet; the precise level of my risk aversion does not matter I should not accept the bet; the precise level of my risk aversion does not matter I should not accept the bet; the precise level of my risk aversion does matter There is not enough information to determine whether I should accept the bet or not; the precise level of my risk aversion does matter

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I am a rational and risk-averse person, and I have an option of making the following bet: I receive...