Multiple Choice
Which of the following is not correct?
A) The higher average return on stocks than on bonds comes at the price of higher risk.
B) Risk-averse persons will take the risks involved in holding stocks if the average return is high enough to compensate for the risk.
C) Insurance markets reduce risk,but not by diversification.
D) Risk can be reduced by placing a large number of small bets,rather than a small number of large bets.
Correct Answer:
Verified
Correct Answer:
Verified
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