List three different ways that a risk-averse person can reduce financial risk
A risk-averse person can reduce risk by buying insurance, by diversifying her stock portfolio, and by holding a larger percentage of her assets as low risk and low return assets such as government securities.
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Social surplus is maximized in a(n) ________
A) perfectly competitive market B) monopolistically competitive market C) monopoly market D) oligopoly market
A large government budget deficit ________ government saving and ________ national saving
A) raises, raises B) raises, lowers C) lowers, raises D) lowers, lowers
Supply curves for secondary supply resources (e.g., scrap metal) become:
A) Steeper in the short run B) More elastic in the long run C) Steeper in the long run D) More inelastic in the short run
When marginal cost is decreasing, total cost is rising
a. True b. False