Economy, asked by 2020mb21307, 6 months ago

An individual is risk neutral if her utility curve for money is

Answers

Answered by Divitaagrawal1230D
5

Explanation:

A person is called risk neutral, if he is indifferent between a certain given income and an uncertain income with the same expected value. An individual will be risk neutral if his marginal utility of money income remains constant with the increase in his money

Answered by lonewolf1231
1

Answer:

Risk neutral is a concept used in both game theory studies and in finance. It refers to a mindset where an individual is indifferent to risk when making an investment decision. ... A person with a risk-neutral approach simply doesn't focus on the risk--regardless of whether or not that is an ill-advised thing to do.

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