The CFAI text discusses the Friedman Savage double utility functions which says that at low income levels and at very high income levels, individuals are risk averse and they are risk seeking in the middle. That seems fine to me. However, in the same reading, under section 2.2.3, the text says that those with less income prefer a small chance of large gain (sounds like lottery, i.e. risk seeking) and the middle income people prefer small, fair gambles (sounds risk averse).
Don’t the two sound contradictory?