Business, 19.06.2020 03:57 kukisbae

Lori, who is risk averse, has two pieces of jewelry, each worth $1,000. She plans to send them to her sister's firm in Thailand to be sold there. She is concerned about the safety of shipping them. She believes that the probability that any box shipped will not reach its destination is theta. Is her expected utility higher if she sends the articles together or in two separate shipments? Lori's expected utility is A. the same whether she sends the jewelry to Thailand in one box or in separate boxes. B. higher if she sends the jewelry to Thailand in one box regardless of her preferences for risk. C. higher if she sends the jewelry to Thailand in one box because she's risk averse. D. higher if she sends the jewelry to Thailand in separate boxes regardless of her preferences for risk. E. higher if she sends the jewelry to Thailand in separate boxes because she's risk averse.

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Lori, who is risk averse, has two pieces of jewelry, each worth $1,000. She plans to send them to he...

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