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One of the Causes of the Recent Financial Crisis in the United

question 32

Essay

One of the causes of the recent financial crisis in the United States has been excessive risk taking due to underestimation of risk.How does this relate to financial leverage?
Can overestimation of risk also be detrimental?


Definitions:

Manifest Content

The outward content of a dream.

Apparent Surface

The visible outer layer or aspect of something, as perceived by an observer.

Freudian Slip

When what you really think deep down comes out as a slip of the tongue.

Misspeaks

Occurrences when an individual unintentionally says something wrong, inaccurate, or inappropriate, often due to a slip of the tongue.

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