Which of the Following Is True About a Risk-Averse Individual

Multiple Choice

Which of the following is true about a risk-averse individual facing a full menu of actuarily fair insurance contracts to choose from?

A) The individual will "over-insure" if consumption is more meaningful in the good state.
B) The individual will "over-insure" if consumption is more meaningful in the bad state.
C) The individual will fully insure when tastes are state-independent.
D) (a) and (b) are true.
E) (a) and (c) are true.
F) (b) and (c) are true.
G) All of the above.
H) None of the above.