Which of the Following Is Not Correct

question 10

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.

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Definitions:

Supply Web

A complex network of suppliers, manufacturers, and distributors working together to produce and deliver products to consumers.

Cycle View

An approach in supply chain management focusing on the processes and activities involved in satisfying customer demand through repetitive patterns.

Supply Chain Processes

The operational activities and procedures involved in the flow of goods and services from suppliers to customers in a supply chain.

Customer Orders

Requests made by customers for the purchase of goods or services, which typically specify the quantity and terms of sale.