Briefly list strengths and weaknesses of this display. Cite specific principles of good graphs, as well as offering your own general interpretation.
Definitions:
Moral Hazard
A situation in which one party is more willing to take risks because the costs that may result will not be borne by them.
Adverse Selection
A situation in which asymmetric information leads to the market being dominated by inferior products or by participants who are at a disadvantage.
Moral Hazard
A situation where one party in a transaction has the opportunity to take risks because the costs that those risks entail will not be borne by that party.
Portfolio Risk
The variability of returns from a portfolio of investments.
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