Show that a risk-neutral person would prefer a 08 chance of


Show that a risk-neutral person would prefer a 0.8 chance of winning 4,000 to a sure payment of 3,000, and that the same person would prefer a 0.2 chance of winning 4,000 to a 0.25 chance of winning 3,000.

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Business Economics: Show that a risk-neutral person would prefer a 08 chance of
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