The Idea of Risk Aversion

question 97

Multiple Choice

The idea of risk aversion

• A)is at odds with the idea of insurance.
• B)help explain the profitability of insurance companies.
• C)has nothing to do with insurance companies.
• D)help explain the losses suffers by the insurance industry.
• E)help explain why insurance companies in the long run are zero profit companies.

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Definitions:

Technology

The application of scientific knowledge for practical purposes, especially in industry and in our daily lives.

Collective Action

The collective effort made by a group aiming to improve their position and accomplish a shared goal.

Faculty Association

An organization representing the professional and labor interests of faculty members in colleges and universities.

Pensions

A fixed sum paid regularly to a person following retirement from service, typically funded during the individual's working life.